Q: Chemtrade has been doing well on the stock market over the past year. It has increase it`s dividend lately. Before covid the distribution was $1.20 per year. This year it will be .72 cents. Do you expect the dividend to go back to $1.20 over the next few years. I am a longterm dividend investor. I have also low investment in the industrial sector. And would you recommnend it?
5i Research Answer:
For industrials we would suggest TFII, CNR, WSP, STN. CHE.UN still has a fairly high debt level. While we would expect some increases over time to the dividend, we would not really expect it to get back to $1.20 for some time (perhaps five years). But, much can change and its business is cyclical. The company has a buyback in place and may focus on that instead of the dividend. But, we would prefer to see debt lower.