Monthly dividend stocks can be a strong choice because they turn investing into something you can feel right away. The steady cash flow can help with budgeting, reinvestment, or simply staying motivated when markets wobble. The best ones also smooth out timing risk, since you don’t rely on one big quarterly payment. Still, the monthly schedule only matters if the underlying business reliably covers the payout. So let’s look at one remaining quite reliable stock.
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CHE
Chemtrade Logistics Income Fund (TSX: CHE.UN) is a Canadian income fund that makes and supplies industrial chemicals used in things people rarely think about until they stop working, like clean water, pulp and paper processing, and industrial manufacturing. It earns money through long-running customer relationships and essential products, which can make cash flow steadier than a typical commodity producer when operations run smoothly.
Over the last year, the story has been about momentum and confidence returning. In late 2025, management raised its 2025 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance and said 2025 should become a record year, surpassing 2023’s level of $502.6 million, assuming market conditions held.
Then, in early 2026, Chemtrade issued 2026 guidance and increased its monthly distribution. It moved the payout up from $0.0575 per unit to $0.06 per unit, which signals management believes cash flow can support a higher run-rate. It has also kept capital allocation in the mix, including unit repurchases through a normal course issuer bid, which can quietly support per-unit results over time. That dividend is now a huge win with even a $7,000 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CHE.UN | $16.07 | 435 | $0.72 | $313.20 | Quarterly | $6,990.45 |
Earnings support
The numbers in the most recent detailed quarter show why the distribution increase didn’t come out of thin air. In Q3 2025, Chemtrade generated $77.8 million of distributable cash after maintenance capital expenditures, up 18% year over year, and that worked out to $0.69 per unit, up 24.4% year over year. Coverage looked strong, with a payout ratio of 25% for the quarter and 32% on a trailing 12-month basis, which is the kind of cushion monthly income investors love to see.
Looking forward, management’s 2026 outlook centres on cash flow staying robust rather than chasing risky growth. Chemtrade guided 2026 adjusted EBITDA to a range of $485 million to $525 million, and it guided maintenance capital expenditures of $120 million to $150 million. Put simply, it expects to keep generating meaningful operating earnings while spending a manageable amount to maintain the assets.
The risks still deserve daylight. Chemtrade sells industrial chemicals, so results can swing with pricing, volumes, and plant reliability, and any outage can dent cash flow fast. Debt and refinancing costs can also matter, even when business conditions look favourable, because interest expense competes with distributions. And if end-markets soften at the wrong time, coverage can tighten even with a “defensive” product set.
Bottom line
In short, CHE.UN can make sense for investors who want monthly cash and can handle a bit of industrial-cycle noise. The recent track record shows improving distributable cash and a distribution increase to $0.06 per unit, and the 2026 guidance suggests management expects cash generation to stay solid. But it won’t suit anyone who needs the unit price to be calm every week, because industrial names can still swing on macro sentiment, operational hiccoughs, or pricing changes.
