RE:RE:Drip it for nowMagic27, you are being played for a fool here big time.
Gord from LaLaland forgot to tell you that most of his money is actually invested in EIT.UN and their distributions are sustainable whereas Chemtrade's are not!
As for Gord stating that the unit price will be north of $10 within two years, simply ask him what he is basing that assumption on? Two years ago, Chemtrade's balance sheet was a lot better than it is today and they also had less units outstanding!
Here is my prediction for Chemtrade; within a year, the present distribution will be reduced yet again or eliminated and I base that on the fact that Chemtrade cut their distribution in half last year? I am using the same logic for the distribution cut as Gord used for his future price appreciation of the Units!
Magic27, do the smart thing here and at least read over the 2020 Financials!
Kherson
Gord_Alberta wrote: That is a good plan; especially while young!
Just a thought to consider. Chemtrade is paying just under 9% "at today's price" which is great for monthly reinvestment. There will come a time (probably within two years) that the stock price will be over $10 as it was two years ago... Which is great price appreciation; yet not so good for reinvestment value of your monthly dividends.
At that point you might look at eit.un - it has very little room for price appreciation; yet the dividends (over 10%) are solid. Your money; your decision - just planting a long term thought...
Magic27 wrote: I feel that my dividend paying strategy at my young age, I get a few decent cheques so if I have the opportunity to use a drip, esp one that gives the +3%, why not. Some of my other holdings have had drips in the past, but a lot of them have been suspended. I'm only a small fish and only going to be getting around 8 shares extra per month, but over a year or 2 I feel with the world slowly reopening, we hopefully will see even just 3-5% upside over the next 6 months.