Chemtrade Logistics Income Fund (CGIFF) (TSX:CHE.UN) provides industrial chemicals and services to customers in North America and around the world. Chemtrade Logistics Income Fund was founded in 2001 and is headquartered in Toronto, Canada.

The company is organized into four main operating segments: (1) Sulphur Products & Performance Chemicals (SPPC), (2) Water Solutions & Specialty Chemicals (WSSC), (3) Electrochemicals, and (4) Corporate.

• SPPC markets, removes, and produces merchant, regenerated, and ultra-pure sulphuric acid, liquid sulphur dioxide, sodium hydrosulfite and provides other processing services.
• WSSC manufactures and markets inorganic coagulants used in water treatment, which includes aluminium sulphate, aluminium chlorodryhate, polyaluminium chloride, sodium nitrate, potassium chloride, and other specialty chemicals.

Its geographical segments are Canada, the United States, and South America.

Three key data points gauge Chemtrade Logistics Income Fund , or any dividend-paying firm.

The key three are: (1) Price (2) Dividends (3) Returns.

Those three basic keys best tell whether any company has made, is making, and will make money.

CGIFF Price

Over the past year, Chemtrade’s share price rose 6% from $6.22 to $6.60 as of Friday’s market close.

If Chemtrade’s stock trades in the range of $5.00 to $8.00 this next year, its recent $6.60 share price might rise to $7.50 by next year. Of course, Chemtrade’s price could drop about the same $0.90 amount, or more.

My upside estimate of $0.90, however, is not supported by any analysts tracking the stock for brokers. However the average annual stock price increase has been about $0.90 over the past three years.

CGIFF Dividend

Chemtrade’s most recent $0.04 monthly dividend, paid June 16th to shareholders of record May 23rd, equates to $0.48 annually to throw a yield of 6.91% as of Friday’s closing price.

CGIFF Returns

Adding the $0.48 anticipated annual dividend to Chemtrade’s estimated $0.90 price upside, reveals a $1.38 potential gross gain per share for the coming year.

At Friday’s $6.60 closing price, a little over $1000 would buy 152 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.065 per share.

Subtracting that maybe $0.065 brokerage cost from my estimated $1.38 gross gain per share makes a net gain amounting to $1.315 X 152 shares = $199.88 for about a 19.5% net gain.

This may be the time to pounce on Chemtrade Logistics Income Fund. But beware, CGIFF’s dividend is shrinking, and its price is recovering from an all time low of $2.35 as of March 23, 2020 after achieving its all-time high of $20.33 posted back on August 22, 2014.

The foregoing article is based on past history of Chemtrade Logistics Income Fund. The only accurate measure of future performance is from active investment in the company.

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