Lorne Zeiler LyondellBasell Industries LYB-N TOP PICK Jul 29, 2016

A petrochemical company. They're vertically integrated and in many markets. They're winning business with strong earnings. The street is neutral on this, but this could be a commodity-uptick play. Decent yield of 3.78%. (Analysts' price target $117.89)

Challenge with industrials in the chemicals space is that they tend to be the canaries in the coal mine for weakening economic times. Fair bit of volatility this year. At this point, doesn't make sense to own.

It is a big plastics maker but sales haven't grown much in the past few years.

The best time to buy this is right now, at the start of rate-cutting, which will boost housing and products associating with home-building like appliances and carpets which require chemicals. Also, China's stimulus is a boost to cyclicals levered to China's economy.

Buy some now, and if it reaches a 7.5% dividend yield, add more.

For this to succeed, they need China to get stronger and have worldwide growth, neither of which we see now.