Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.F

dividends - income trust

[Hich1205]

They have to distribute all of their taxable income to uniholders ... unless they prefer to pay 53.5% of taxes on non-distributed amounts. With the low level of distribution rigt now, i guess they prefer to pay CRA than shareholders, to save some cash, reduce the leverage and not be too stressed with managing a levereged Business. My only fear, is that these management have no consideration for unitholders and they will not hesitate to dilute (again) unitholders if the Arizona project is approved. Dilute the stock harms the unitholders but will please the management since they will have less leveraged business

[UltraTired]

How is a less leveraged business during these poor economic times a bad thing for dividend seeking shareholders? That has nothing to do with dividends and is more of a concern if you are looking for equity growth in the stock. If you want equity growth, this stock isn't for you.

[raybay_98]

"If you want equity growth, this stock isn't for you." So why build the Arizona Plant?

[UltraTired]

Are you serious? Your question is why build a joint venture project with a customer?

[UltraTired]

Sorry, correction, partner with an Asian firm to produce a new product?

[Hich1205]

I gues that most of the shareholders are looking for dividends when investing in this stock. That`s why we are not happy with the way management is conducting business, cutting dividends and focusing on develeraging the Business. They will still get ther bonuses and we are loosing our value. And by the way, seeking dividends does not mean that we are ready for stock value destruction. Shareholders

[Janniem]

They have not been cutting dividends. They increased them, dont you worry, this stock is going back up. Buy more it is a great value if you are interested in a decent dividend.

[Hich1205]

what?? they increased the dividends?? we used to have 10c and now it`s 5.5c , how this is an increase. they took the execuse of Covid to cut 50% of the dividend and now covid is over, and the business is doing better than pre-covid era, as a result, from the 50% cut , they increase 10% so we are at 5.5 vs 10c, that`s a dividend cut of 45%. So unitholders are loosing 60% of their investment and are

[raybay_98]

You hit the nail on the head!

[UltraTired]

Lol, that's not how it works lol they had a dividend of $0.05 and now it's $0.055. That's an increase year over year. You don't subtract that from pre COVID  and say OMG they cut the dividend year over year lol

[Hich1205]

that's funny, and maybe the stock is not down 60 % for the last 10 years but just down 12% in the last year.  Financial Performance is evaluated on a mid-long term to avoid seasonality and point in time events not just for 3 months, ie. since they increased the dividend. Otherwise it will be very easy for management to withdraw all dividend then reinstate s ridiculous 1c dividend and say

[raybay_98]

"the business is good, the problem is the mangement with no respect for shareholders and stock dillution drunk." And once again you hit the nail on the head! Kudos to you sir!

[raybay_98]

"My only fear, is that these management have no consideration for unitholders". Agree, now you know the rest of the story.