Dividend-income investors require holding companies that grow their payout and business. Two companies do not offer those qualities.
First up is LyondellBasell (LYB). Expectedly, the company announced a dividend cut of 49.6%, to $0.69 a share. LYB CEO Peter Vanacker said that the company returned around $2 billion to its shareholders in 2025. He cited challenging markets to recalibrate the dividend. That would position the company to thrive, only after markets recover.
Investors who bought LYB stock in the low $40 range might consider adding to their position. They have paper gains, since the stock gained 29.6% in the last quarter.
In the telecom sector, watch out for Telus (TU). The stock bounced from a yearly low, despite posting missing expectations in the fourth quarter.
Telus earned $0.20 on a non-GAAP measure on revenue of C$5.26 billion. That is down by 2.2% Y/Y. Mobile network revenue grew, while ARPU performance improved. Telus declared a CAD 0.4184 per share dividend. This is not sustainable, since rising competition in Canada’s telecom sector will hurt profitability.
On February 12, the firm announced that CEO Darren Entwistle will retire. Victor Dodig will replace him on July 1, 2026. Expect the new leadership to reset the business by slashing dividends. That would give Telus a stronger cash flow position so that it may invest in upgrading its business infrastructure.
