We recently published a list of 12 Highest Dividend Stocks to Buy on Cash App. In this article, we are going to take a look at where LyondellBasell Industries N.V. (NYSE:LYB) stands against other highest dividend stocks to buy on cash app.
Technology has seamlessly woven itself into our daily lives in today’s digital era, significantly impacting how we manage finances. The shift from physical wallets to digital platforms is becoming increasingly common. Cash App has become a prominent player in the digital financial space, steadily growing in popularity. This mobile payment service allows users to send, receive, and request money from individuals and businesses alike. Since its launch in 2013, Cash App has become one of the most widely used digital wallets in the US, competing with other platforms like Venmo and Zelle. The Consumer Financial Protection Bureau (CFPB) reported that Cash App now boasts over 56 million accounts, with Block, its developer, earning over 50% of its gross profit from the app in 2023.
The pandemic served as a catalyst, speeding up the rising trend of app usage, especially in the financial sector. With lockdowns and social distancing measures in place, people increasingly relied on online platforms for shopping, highlighting the importance of contactless payments. This change in consumer habits drove a surge in app usage, enabling a smooth transition to remote and contactless transactions. Zelle, the peer-to-peer money transfer app, reported a 27% increase in network transactions during the first half of 2024, with nearly $500 billion in payments processed. In the first six months of the year, consumers and businesses completed 1.7 billion transactions across 143 million accounts, as reported by Bloomberg.
This mainly highlights the promising future of online payments and their continued growth across upcoming generations. In fact, Block CFO Amrita Ahuja shared with CNBC’s Jim Cramer that Cash App’s payment services are particularly popular among younger consumers. Ahuja pointed out that the Cash App card, a free Visa debit card, has gained significant traction with this demographic. She also highlighted that Cash App successfully engages the younger generation through initiatives like a family program, which enables adults to sponsor accounts for teenagers.
That said, with success comes increased risk. Recently, Cash App has faced challenges, as the CFPB accused the platform of enabling widespread fraud and misleading its users. In 2023, Hindenburg Research, a well-known short seller, claimed that Block had inflated the number of Cash App users and highlighted illegal activities on the app. Block dismissed the report as “factually inaccurate and misleading.” In its enforcement action, the CFPB stated that Block is legally obligated to investigate and resolve disputes regarding unauthorized transactions, but described the company’s efforts as “severely lacking.” Instead, Block reportedly directed users to request their banks to reverse transactions, which Block would subsequently deny. As a result, Block will pay up to $120 million in refunds to consumers, establish a 24-hour customer service program, and pay a $55 million fine.
Across different investment platforms, investors consistently prioritize generating cash flow. This focus on cash generation drives them towards dividend stocks, which are well-known for offering shareholders a steady stream of income.
Our Methodology
For this article, we reviewed multiple reliable websites and videos that discuss dividend stocks available on Cash App. Our goal was to identify stocks that were consistently recommended by credible sources and analyst reports. After analyzing the gathered information, we selected 12 stocks that stood out due to their dividend yields exceeding 4% as of January 21. These stocks are ranked in order of their dividend yields, starting from the lowest. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Is LyondellBasell Industries N.V. (LYB) the Highest Dividend Stock to Buy on Cash App?
A factory worker monitoring a conveyor belt of specialty chemicals being produced.
LyondellBasell Industries N.V. (NYSE:LYB) is a multinational chemicals firm that specializes in plastics, chemicals, and refining. In the third quarter of 2024, the company surpassed its industry peers in safety performance, reporting a recordable incident rate of 0.13. This reflects strong safety practices. The company also saw significant growth in its Olefins and Polyolefins-Americas segment, which delivered a 13% sequential increase in EBITDA to $758 million. This marked its best quarter since Q2 2022 and a 50% year-over-year rise.
Despite the challenging global macroeconomic environment, LyondellBasell Industries N.V. (NYSE:LYB) leveraged its robust North American operations, benefiting from strong ethylene margins in the region. Demand for polyethylene and polypropylene in North America increased by more than 7% and 4%, respectively, compared to 2023. In the third quarter, the company’s volumes were supported by high operating rates at its crackers, allowing it to capitalize on improved margins from merchant ethylene sales. The company’s quarterly revenue reached $10.32 billion, a 2.8% decrease from the same period last year.
LyondellBasell Industries N.V. (NYSE:LYB) remains a favored option for dividend-seeking investors, supported by its robust cash reserves, which allow for significant dividend distributions. In the third quarter of 2024, the company returned $479 million to shareholders through dividends and share repurchases. It also generated $670 million in operating cash flow during the quarter. On November 22, 2024, the company announced a quarterly dividend of $1.34 per share, which was in line with its previous dividend. It is one of the best Cash App stocks to buy as the company has raised its payouts for 14 consecutive years. The stock supports a dividend yield of 6.89%, as of January 21.
At the end of Q3 2024, 38 hedge funds, compared with 41 in the previous quarter, owned stakes in LyondellBasell Industries N.V. (NYSE:LYB), as tracked by Insider Monkey’s database. These stakes have a consolidated value of over $546.2 million.
Overall, LYB ranks 2nd on our list of highest dividend stocks to buy on cash app. While we acknowledge the potential for LYB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LYB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
