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.
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