Monthly Dividend Stock in Focus: ChemTrade Logistics Income Fund

Published on April 24th, 2026 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 119 companies currently offer monthly dividend payments, which can severely limit an investor’s options. You can see all 119 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 offers a dividend yield of 4.5%, about three times the S&P 500 Index’s 1.4% yield.

The trust pays monthly distributions, 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, as well as other major industrial and consumer markets. The trust operates through two key segments: Sulfur & 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, a compound widely used as a bleaching agent in the pulp and paper industry.

Furthermore, its Chlor-Alkali products are critical to supporting various processes across industries such as steel, oil & gas, water treatment, and pulp & paper.

Source: Investor Presentation

The company reported record full-year 2025 results, with revenue of $1,997.8 million (+11.8%) and adjusted EBITDA of $507.4 million (+7.8%). Net earnings rose to $139.4 million, and distributable cash reached $228.0 million ($1.99 per unit). Growth was driven by stronger pricing and volume growth in key chemical segments, while the balance sheet remained solid, with a 2.3x leverage ratio.

Growth Prospects

Chemtrade has not achieved significant growth in its history, with its revenues and EBITDA declining at compound annual growth rates (CAGRs) 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 sulfuric 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 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 more 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 reducing debt, the trust may resume increasing its distributions in the years to come, as it can easily afford to. Alternatively, management could maintain the current monthly payout rate and allocate capital to growth opportunities and further deleveraging.

The latter scenario seems more plausible, especially given that interest rates remain high and that Chemtrade’s units already carry an above-average 4.5% 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 Chemtrade remains a compelling option for income-oriented investors seeking dependable, frequent payouts. With visible organic growth avenues to capitalize on, significant progress in deleveraging in recent quarters, a comfortable payout ratio, and a generous yield of 4.5%, the trust’s investment case does not seem particularly appealing given the risk involved.

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