High Dividend 50: Huntsman Corporation

Printed on October twenty first, 2025 by Felix Martinez

Excessive-yield shares pay out dividends which might be considerably larger than the market common. For instance, the S&P 500’s present yield is just ~1.2%.

Excessive-yield shares may be significantly useful in shoring up revenue after retirement. A $120,000 funding in shares with a median dividend yield of 5% creates a median of $500 a month in dividends.

Huntsman Company (HUN) is a part of our ‘Excessive Dividend 50’ sequence, which covers the 50 highest-yielding shares within the Certain Evaluation Analysis Database.

We’ve created a spreadsheet of shares (and intently associated REITs, MLPs, and so forth.) with dividend yields of 5% or extra.

You may obtain your free full listing of all securities with 5%+ yields (together with necessary monetary metrics akin to dividend yield and payout ratio) by clicking on the hyperlink under:

Subsequent on our listing of high-dividend shares to evaluate is Huntsman Company (HUN).

Enterprise Overview

Huntsman Company reported a weak second quarter of 2025, with revenues of $1.46 billion, down 7% year-over-year and lacking expectations by $36.7 million. The corporate reported a internet lack of $158 million, or $0.92 per share, in comparison with a internet achieve of $22 million final 12 months. Adjusted internet loss was $34 million, with adjusted EBITDA falling to $74 million from $131 million, although working money movement remained constructive at $92 million and free money movement reached $55 million.

All segments noticed declines. Polyurethanes income declined because of decrease costs, diminished building demand, and a scheduled turnaround on the Rotterdam facility. Efficiency Merchandise dropped 10% amid softer market situations, whereas Superior Supplies fell 5% because of weaker gross sales in coatings and aerospace. Section EBITDA declines mirrored decrease volumes and costs, partially offset by price financial savings.

Huntsman expanded its restructuring efforts, together with the closure of its European Maleic Anhydride facility and a discount in its world workforce by almost 10%, primarily in Europe. CEO Peter Huntsman highlighted price management and money technology as priorities. The corporate ended the quarter with $399 million in money and $1.3 billion in complete liquidity, sustaining concentrate on steadiness sheet power amid difficult market situations.

Supply: Investor Relations

Development Prospects

Huntsman Company operates a extremely cyclical enterprise, with its monetary efficiency being delicate to uncooked materials prices, foreign money fluctuations, and demand within the industrial sector. These components have contributed to a decline in income over the previous decade, from $11.58 billion in 2014 to $6.2 billion final 12 months. Strategic acquisitions, nevertheless, have generated synergies that improved gross margins and partially offset weaker gross sales.

Earnings per share have been risky, although medium-term development of round 5% is anticipated, supported by cost-cutting initiatives, acquisitions, recovering gross sales, and share buybacks. Since launching its dividend in 2008, Huntsman has elevated it six occasions, sometimes when efficiency permits for better protection.

Given current profitability challenges, dividend development is projected to stay modest at about 1% yearly, and traders mustn’t count on constant yearly will increase. Huntsman’s monetary trajectory will largely rely upon cyclical market situations and operational effectivity.

Supply: Investor Relations

Aggressive Benefits & Recession Efficiency

The corporate advantages from a diversified product portfolio throughout 4 segments—Polyurethanes, Efficiency Merchandise, Superior Supplies, and Textile Results—which permits it to serve a variety of industries, together with aerospace, automotive, building, and packaging.

Its concentrate on specialised chemical options, customer-driven innovation, and strategic acquisitions has helped keep robust gross margins and operational effectivity, offering a level of insulation from commodity pricing pressures and aggressive market volatility. International operations and established shopper relationships additional reinforce Huntsman’s market place.

Nevertheless, Huntsman’s cyclical enterprise mannequin makes it delicate to financial downturns. Income and earnings have a tendency to say no throughout recessions as industrial exercise and building demand soften. Whereas the corporate has traditionally leveraged cost-cutting initiatives, restructuring, and strategic divestitures to protect money movement and shield the steadiness sheet, profitability stays risky, and efficiency is intently tied to broader macroeconomic situations.

• 2008 earnings-per-share: -$0.20
• 2009 earnings-per-share: -$0.80
• 2010 earnings-per-share: $0.83

Dividend Evaluation

Huntsman Company has a modest however constant dividend historical past, initiating its first payout in 2008 and growing it six occasions since. Dividend coverage is intently tied to enterprise efficiency, with hikes sometimes occurring when profitability and money movement permit for comfy protection. The corporate prioritizes steadiness sheet power and money technology over aggressive dividend development. At present, Huntsman gives a dividend yield of roughly 12.3%.

Given current volatility in earnings and cyclical market pressures, dividend development is anticipated to stay modest, with medium-term will increase projected at round 1% yearly. Buyers mustn’t count on common yearly hikes, as the corporate has traditionally adjusted payouts solely when efficiency warrants it. Strategic price administration, acquisitions, and share buybacks complement the dividend to boost shareholder returns.

Last Ideas

Huntsman’s current efficiency has been pressured by decrease gross sales volumes throughout all segments and rising prices from elevated inflation. Regardless of this, we count on earnings to renew development, with forecasted annualized returns over 17% via 2030, pushed by 5% earnings development, a 12.3% yield, and potential a number of growth. Shares are rated as extremely speculative, and traders ought to anticipate important value volatility.

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