LyondellBasell Industries recently announced plans to expand its propylene production capacity, which may signal a forward-thinking move amid fluctuating market conditions. Despite this positive development, the company's stock experienced a price drop of 3.03% over the past month. This decline coincided with broader market volatility, as evidenced by the Dow Jones and S&P 500's downturns due to concerns over new U.S. tariffs and their economic impacts. Additionally, LyondellBasell maintained a dividend declaration, which might have offered some stability to investors. However, the overall market sentiment driven by trade tensions and a broad sell-off in multiple sectors likely overshadowed positive company-specific news. As the market itself declined by 2.5%, LyondellBasell's performance aligns with the general market trend, reflecting a broader investor caution prevailing in response to recent geopolitical and economic developments.

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Over the last five years, LyondellBasell Industries' total shareholder return, including share price gains and dividends, reached 64.35%. This marks an impressive increase against a backdrop of industry challenges. Despite recent underperformance compared to the broader US market, where the company lagged behind the market's 13.1% return over the past year, certain strategic initiatives have likely contributed to its longer-term growth. Notably, the company declared consistent dividends, with increases seen in 2024 demonstrating a commitment to shareholder value. Additionally, the announcement in late 2024 of a joint venture with AFA Nord for a recycling plant highlights efforts to focus on sustainability.

LyondellBasell’s share buyback program, which saw repurchases including 926,840 shares by early 2025, likely further enhanced shareholder returns. However, the company has also faced earnings challenges, with financial results impacted by a large one-off loss of US$665 million in 2024, which could partially explain recent stock volatility despite the longer-term positive return.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:LYB.

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