Hi Douglas,
Personally, I've never been a fan of Chemtrade regardless of what type of investor. That said, I do get the appeal for retirees who are looking for a boost in income. Chemtrade currently yileds 7.86% which is likely very appealing. The distribution looks to be well covered as its current TTM payout ratio only 30%, down from 72% last year. That said it does expect to be in the mid-40% range in Fiscal 2023. Also worth nothing, the company slashed the dividend by 50% in 2020 during the pandemic and there is no sign that the company plans on raising it any time soon. It is always important to take not of those that have had cuts in the past. While it doesn't mean a cut is coming in the future (current ratios don't support that), it does mean that the company is willing to cut if need be.
Of note, the Payout Ratio is reflected in terms of distributable cash flow which is a form of free cash flow. The dividend as a % of cash from earnings operations which is more standard also looks good (currently sitting at ~18%) so at this point, I really don't have any concerns about the safety of the dividend as it stands today.
In terms of total returns however, Chemtrade is cyclical and has never provided much in terms of reliable capital appreciation. So, to answer your question - it'll depend on why you are buying it. If it is for the dividend only and one doesn't care about total returns, then the juicy yield does look safe at the moment. If one is interested in Total Returns, then the cyclical nature and the spotty history of execution wouldn't be that attractive.
Mat