LYB vs SHW: Dividend Yield, Growth & Safety Comparison
LyondellBasell Industries N.V. (LYB) and Sherwin Williams Co (SHW) are both in the Materials sector, making them natural rivals for dividend investors. LYB offers a significantly higher 9.40% yield compared to SHW's 0.87%, a gap of 8.53%. For dividend growth, SHW leads with a 5-year CAGR of 9.5% versus LYB's 5.3%. Both stocks carry a "Safe" dividend safety rating. SHW is a Dividend Aristocrat with 40 years of consecutive increases.
Key Metrics Comparison
| Metric | LYB | SHW |
|---|
| Dividend Yield | 9.40% | 0.87% |
| Annual Dividend | $5.42 | $3.16 |
| 5-Year CAGR | 5.3% | 9.5% |
| Payout Ratio | 11% | 31% |
| Consecutive Years | 2 | 40 |
| Price | $57.80 | $368.50 |
Yield Comparison
LyondellBasell Industries N.V. (LYB) currently yields 9.40%, which is high for the broader market. That's 8.53% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, LYB pays $5.42/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, SHW has grown its dividend at a 9.5% CAGR compared to LYB's 5.3%. LYB: Dividend growth has been steady, with a 3-year CAGR of 5.0% and a 5-year CAGR of 5.3% (10-year: 5.6%). SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
Dividend Safety
LYB's dividend safety is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. LYB's payout ratio of 11% is more conservative than SHW's 31%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in LYB generates approximately $940/year in dividend income, compared to $87/year from SHW — a difference of $853/year. At $100,000, that gap widens to $8530/year.
Verdict
- Best for income: LYB
- Best for growth: SHW
- Best for safety: LYB
Frequently Asked Questions
Which has a higher dividend yield, LYB or SHW?
LyondellBasell Industries N.V. (LYB) has a higher dividend yield of 9.40% compared to Sherwin Williams Co (SHW) at 0.87%.
Is LYB or SHW a better dividend growth stock?
Sherwin Williams Co has the stronger dividend growth with a 5-year CAGR of 9.5%, compared to LyondellBasell Industries N.V.'s 5.3%.
Which is safer for dividend income, LYB or SHW?
LyondellBasell Industries N.V.'s dividend safety is rated "Safe" while Sherwin Williams Co is rated "Safe." The payout ratio of 11% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend -0.7x. The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in LYB vs SHW generate?
A $10,000 investment in LYB generates approximately $940/year in dividends, while the same amount in SHW generates about $87/year.
Is LYB or SHW a Dividend Aristocrat?
Sherwin Williams Co is a Dividend Aristocrat with 40 consecutive years of increases. LyondellBasell Industries N.V. does not currently qualify for aristocrat status.
Which has a lower payout ratio, LYB or SHW?
LyondellBasell Industries N.V. has a lower payout ratio of 11% compared to Sherwin Williams Co's 31%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
LYB vs SHW: which is better for retirement income?
It depends on your priorities. LYB for current income, SHW for dividend growth, LYB for safety. Many retirement investors hold both for diversification.
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