Published on March 31st, 2025 by Felix Martinez
Investors looking for a reliable income stream may benefit from investing in companies that pay monthly dividends. This can enhance predictability and minimize a stock’s uncertainty.
That said, just 76 companies currently offer monthly dividend payments, which can severely limit an investor’s options. You can see all 76 monthly dividend-paying names here.
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:
One name that we have not yet reviewed is Chemtrade Logistics Income Fund (CGIFF), a Canadian-based trust that operates in the chemicals industry. Currently, the stock is offering a dividend yield of 7.2%, which is about five times higher than the 1.4% yield of the S&P 500 Index.
The trust pays out distributions monthly, making it suitable for income-oriented investors.
This article will evaluate the trust, business model, and distribution to determine if Chemtrade Logistics could be a good candidate for purchase.
Business Overview
Chemtrade Logistics Income Fund is a diversified trust that provides industrial chemicals and services critical to the gasoline, motor oil, fine paper, metals, and water treatment industries and to other major industrial and consumer markets. The trust operates through two key segments: Sulphur & Water Chemicals (SWC) and Electrochemicals (EC).
The SWC segment focuses on a range of products, including Sulphur-based, water treatment, and specialty chemicals. As a leading supplier of inorganic coagulants for water treatment in North America, Chemtrade’s SWC segment generated approximately 60% of the trust’s total revenues last year.
On the other hand, the EC segment primarily produces and markets Sodium Chlorate and Chlor-Alkali products. Chemtrade is a significant supplier of Sodium Chlorate in Canada and Brazil, which is widely utilized as a bleaching agent in the pulp and paper industry.
Furthermore, its Chlor-Alkali products are critical in supporting various processes in industries like steel, oil & gas, water treatment, and pulp & paper. Last year, the EC segment generated the remaining 40% of the trust’s total revenues.
Source: Investor Presentation
The company fourth quarter and full year fiscal year. The company reported Q4 2024 revenue of $446.5M (+5.8% YoY) and Adjusted EBITDA of $108.6M (+28.3% YoY). Net earnings were $10.3M (-$1.4M YoY) due to the prior year’s P2S5 sale. Operations cash flow rose to $100.0M (+1.4%), while distributable cash surged to $39.5M (+192.5%).
For the full year 2024, revenue was $1.79B (-3.2%), with Adjusted EBITDA at $470.8M, the second-highest in company history. Net earnings fell to $126.9M (—$122.4M YoY) due to higher finance costs and forex losses. Chemtrade returned $131.1M to unitholders via buybacks and dividends and ended with a 1.8x net debt-to-EBITDA ratio.
For 2025, Chemtrade reaffirmed its Adjusted EBITDA guidance of $430M—$460M. Management remains focused on growth in water chemicals and ultrapure acid, maintaining a strong balance sheet, and delivering shareholder returns.
Growth Prospects
Chemtrade has not achieved significant growth in its history, with its revenues and EBITDA decreasing at a compound annual growth rate (CAGR) of -4.5% and -1.3% over the last decade, respectively.
For example, in 2017, the company acquired Canexus Corporation, which is known for producing low-cost sodium chlorate and chlor-alkali products. At the same time, Chemtrade divested Aglobis, a smaller sulfur and sulphuric acid marketing business.
Regarding organic growth, the company expects its current business to benefit from the ever-increasing demand for semiconductors. The CHIPS Act is expected to keep driving growth in the semiconductor growth industry, with several new semiconductor fabrication plants under construction in the U.S. As Chemtrade is the largest supplier of UPA (Ultrapure Acid) in North America, it is expected to continue experiencing elevated demand.
Furthermore, stricter regulations and population growth are expected to sustain the growing demand for coagulants, which should also benefit Chemtrade as one of the largest suppliers of inorganic coagulants for water treatment in North America.
Dividend Analysis
Since its inception, Chemtrade has paid a monthly distribution in line with its goal of providing sustainable income for unitholders.
Following a series of distribution cuts between 2003 and 2006 after a shaky IPO, Chemtrade paid a monthly distribution of C$0.11 between January 2007 and January 2020 (145 consecutive months). The monthly distribution was then halved at C$0.05, where it has remained since.
Due to increased interest expenses and dilution from distributing to a larger number of units, Chemtrade found itself in a difficult position. To strengthen its balance sheet, the company reduced its monthly distribution.
Source: Investor Presentation
Despite the nearly 23-year high interest rates prevailing right now, Chemtrade currently has a solid interest coverage ratio.
Considering the significant progress made in terms of reducing debt, the trust may resume raising its distributions in the years to come, as it can easily afford to. Alternatively, management could choose to maintain the current rate of monthly payouts and instead allocate capital towards growth opportunities and further deleveraging.
The latter scenario seems more plausible, especially given that interest rates remain high and that the units of Chemtrade are already attached to an above-average 7.2% dividend yield.
Final Thoughts
Chemtrade has a commendable track record of paying monthly distributions, although the 2020 reduction revealed some imprudent capital allocation by management in the past decade.
Nevertheless, we think that Chemtrade still offers a compelling option for income-oriented investors seeking dependable and frequent payouts. With visible organic growth avenues to capitalize on, significant progress made in deleveraging in recent quarters, a comfortable payout ratio, and a generous yield of 7.2%, the trust’s investment case seems particularly appealing.
Don’t miss the resources below for more monthly dividend stock investing research.
- The Monthly Dividend Stocks List
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more