LyondellBasell and Other High-Yield Stocks Face Risks
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- LyondellBasell Financial Struggles: The chemicals company reported in Q3 2025 that it faces market challenges, with a projected Q4 performance unlikely to improve, resulting in a $3.78 per share loss and a 47% year-over-year decline, which could impact future dividend payments.
- Alexandria Realty Dividend Cut: As a medical office REIT, the company cut its dividend in December 2025, with the next payment in January 2026 expected to yield only 5.3%, indicating that the high yield may not be as attractive as it seems.
- Conagra Brands Underperformance: Although the packaged food company reported earnings of $0.89 per share in the first half of fiscal 2026, it still posted a loss due to one-time charges, leading to a payout ratio nearing 85%, highlighting the investment's high-risk nature.
- Risks of High-Yield Stocks: Considering LyondellBasell, Alexandria Realty, and Conagra Brands, these high-yield stocks all exhibit significant financial issues, making them unsuitable for conservative investors, who may be better off seeking lower-yielding consumer staples with stronger fundamentals.
Analyst Views on ARE
Wall Street analysts forecast ARE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARE is 51.53 USD with a low forecast of 15.84 USD and a high forecast of 67.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
4 Buy
11 Hold
0 Sell
Moderate Buy
Current: 57.160
Low
15.84
Averages
51.53
High
67.00
Current: 57.160
Low
15.84
Averages
51.53
High
67.00
About ARE
Alexandria Real Estate Equities, Inc. is a life science real estate investment trust. The Company is an owner, operator and developer of collaborative life science, agricultural technology (agtech), and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. The Company, through its venture capital platform, provides strategic capital to life science, agrifoodtech, climate innovation, and technology companies. Its tenants include multinational pharmaceutical companies; public and private biotechnology companies; life science product, service and medical device companies; digital health, technology, and agtech companies; academic and medical research institutions; United States government research agencies; non-profit organizations, and venture capital firms. It has a Labspace asset base predominantly concentrated in markets with barriers to entry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
