I’m thinking about taking a position in CHE.UN how do you feel about this stock

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Asked on November 30, 2020 9:38 am
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Never been a fan of this company. Very inconsistent

Company did also slash its dividend in half during the pandemic. People get drawn to this stock by its massive dividend yield. However, it's important to note that its yield is so high because its stock price has been cratering for the better part of 5 years.

Company has a compound annual growth rate of -25% annually over the last half decade. Investors drawn to a huge double digit yield have saw a $10,000 investment shrink down to $2,330 in just 5 years.

Is there upside at todays levels? Probably. But people have been saying this about Chemtrade for a while, and all it's done is disappoint.

Fundamentally, I'm avoiding this company. I don't buy anything without a long-term timeline in mind, no matter how lucrative the short-term price action may be. However, it's ultimately up to you if you want to take the chance on grabbing a big dividend yield and hoping the price rebounds. But, analysts do expect earnings to continue shrinking, and revenue has been flat for the better part of 4 years.

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Posted by Dan Kent
Answered on November 30, 2020 10:43 am