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The chemical industry's overall growth outlook is relatively modest, with an expected annual growth rate of just 1.46%. Despite challenges, Dow's diversification across various sectors—including packaging, specialty chemicals, coatings, and automotive—may cushion against volatility.
LyondellBasell: Navigating a Tough Landscape
LyondellBasell, another player with a strong dividend yield, shares similar traits with Dow, appearing financially healthy but facing considerable market challenges. The company's outlook is clouded by declining car sales, diminishing exports, and overall weak global conditions. They have issued forecasts that suggest low to no free cash flow in the near term, raising concerns about revenue generation.