# Chemical Giants Cut Dividends, One Raises

> Two chemical companies cut dividends while one keeps raising, and income investors must know why.
- Title: Chemical Giants Cut Dividends, One Raises · 24/7 Wall St.
- Summary: Two chemical companies cut dividends while one keeps raising, and income investors must know why. Dow and LyondellBasell cut dividends after years of growth…
- Keywords: dow, lyondellbasell, air products, dividend, free cash flow, chemical companies, income investors, Chemical, Giants, Cut, Dividends, One
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/16/two-chemical-giants-cut-their-dividends-one-kept-raising-heres-what-income-investors-should-know
- Author: Chris Lange
- Published: 2026-10-16T19:15:59+00:00
- Read time: 1 min
- Topics: dow, lyondellbasell, air products, dividend, free cash flow, chemical companies, income investors
## Dow Cuts Dividend
Dow reduced its quarterly dividend from $0.70 to $0.35 after six years of payments.
## Dow Dividend Safety
Dow's free cash flow covers its dividend 2.6 times in the first half of the year.
## Dow's Financial Health
Dow has $14 billion in liquidity and no debt due before 2029, with $3.97 billion in cash.
## LyondellBasell Cuts Dividend
LyondellBasell reduced its quarterly dividend from $1.37 to $0.69 after years of growth.
## LyondellBasell Dividend Safety
LyondellBasell's free cash flow covered its dividend 2.15 times in Q2 but was negative in Q1.
## Air Products Raises Dividend
Air Products increased its quarterly dividend from $1.79 to $1.81, maintaining a 20-year raise streak.
## Why Dividends Differ
Dow and LyondellBasell sell commodity chemicals with volatile prices, while Air Products supplies industrial gases under long-term contracts.
## Air Products' Cash Flow
Air Products has a 25.6% adjusted operating margin and free cash flow positive year to date.
## Key Risk for Dow
Dow's third-quarter EBITDA is expected to drop from $2.3 billion to $1.7 billion, and cash coverage may weaken.
## Key Risk for LyondellBasell
LyondellBasell's production was disrupted by the Middle East conflict, reducing operating rates to 95%.
## Key Risk for Air Products
Air Products incurred $2.9 billion in pre-tax charges from clean-energy projects, impacting quarterly earnings.
## What Investors Should Watch
Dow and LyondellBasell need stable cash flow to maintain dividends, while Air Products' raises depend on electronics backlog growth.
## Key takeaway

Dow and LyondellBasell cut dividends after years of growth, while Air Products raised its payout due to stable cash flow from industrial gases.