Chemtrade Logistics

Hey Chad,

Chemtrade has a spotty history of dividend sustainability because of its exposure to commodity prices. Today, the company is doing well and the dividend is well covered. It did however, cut the dividend at the onset of the pandemic and did a few years back as well. So that is the danger of these cyclical stocks in terms of 'dividend safety'.

In terms of the stock itself, I have never been that big of a fan because of this and it has a spotty history of execution. There are many investors who really like it for the yield but as mentioned, even that can be at risk given the cyclical nature of the industry. ALl that being said, here it is reasonably valued and the dividend looks safe today. It isn't however, one you can tuck away and not worry about. You'll have to keep an eye on it.

Mat