LyondellBasell Industries: Questionable Capital Allocation Raises Red Flags About Dividend Sustainability

LyondellBasell Industries N.V. appears attractively valued with a high dividend yield but faces deep structural and cyclical challenges. LYB's declining margins, rising debt, and shareholder returns outpacing cash generation raise concerns about dividend sustainability and long-term capital discipline. Valuation metrics look cheap but depend on a cyclical rebound; recent financial performance and margin trends suggest future upcycles may have less upside than previously.