Sunday, February 4, 2018 1:46 PM EDT
Stock buybacks get a bad reputation — and justifiably so. It seems that for most companies, a share repurchase is little more than an expensive mop to soak up share dilution from executive stock options or other share-based compensation.
So, it’s refreshing to see a company like LyondellBasell Industries (LYB). When Lyondell announces a share buyback, they mean it. The company has reduced its share count by about 10% per year for the past three years while also raising its dividend by nearly 20% per year.
That’s a company that takes care of its shareholders.
I recently added LyondellBasel to my Dividend Growth portfolio.
Disclosure: Long LYB
Disclosure: Charles Sizemore is the author of the Sizemore Insights financial blog and is based in ...
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Disclosure: Long LYB
Disclosure: Charles Sizemore is the author of the Sizemore Insights financial blog and is based in Dallas, Texas.
Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.
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