A dividend stock can be a great buy when it is down in share price, but only under the right conditions. Investors want the business to still be healthy, the payout to look secure, and the weakness to come from market mood rather than a broken model. When those pieces line up, a lower share price can mean a better yield, more upside, and a nicer long-term entry point. That’s why we’re looking at this dividend stock on the TSX today.
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CHE
Chemtrade Logistics Income Fund (TSX:CHE.UN) is not exactly a household name, but it touches a lot of important industries. It supplies industrial chemicals and services across North America, including sulphuric acid, water treatment chemicals, sodium chlorate, and other products used in mining, water treatment, pulp and paper, and industrial processing. In short, it helps keep a lot of boring but essential parts of the economy running, and that can be a very nice place for dividend investors to be.
Over the last year, the story has actually been pretty busy. Chemtrade completed its acquisition of Polytec in November 2025, adding a U.S.-based turnkey water treatment solutions provider to the mix. It also kept buying back units through its normal course issuer bid, with about 8.9 million units repurchased in 2025. That’s a nice signal from management. Companies do not usually buy back stock that aggressively unless they think it is worth more.
There has also been a clear capital-return theme here. Chemtrade raised its monthly distribution in January 2025 to $0.0575 per unit, then raised it again in January 2026 to $0.06 per unit. That makes three straight years of distribution increases. For an income stock, that kind of pattern matters. It suggests management sees the recent improvement as durable, not just a lucky stretch.
Into earnings
The earnings help explain that confidence. Chemtrade delivered record 2025 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $507.4 million, up from $470.8 million in 2024. Distributable cash after maintenance capital expenditures rose to $228 million, or $1.99 per unit, from $213.1 million, or $1.80 per unit, the year before. Revenue in the fourth quarter reached $502 million, up 12.4% year over year, while net earnings for the quarter climbed to $38.3 million. Those are not the numbers of a business in trouble.
The valuation still looks fairly reasonable too. At an annualized distribution of $0.72, Chemtrade offers a yield of about 4.9%. Meanwhile, the 2026 distribution is expected to represent a payout ratio of about 45% based on the midpoint of management’s EBITDA guidance. That is a very comfortable level for an income name, especially one that just put up record results. The market may be treating the dividend stock cautiously after a strong run, but the cash generation says the payout still has room to breathe.
Looking ahead, the future case is pretty easy to follow. Chemtrade reaffirmed 2026 adjusted EBITDA guidance of $485 million to $525 million, essentially in line with its record 2025 performance. It also plans to invest $35 million to $55 million in growth capital this year, with a focus on water treatment chemicals projects. There are risks, of course. Chemical pricing can move around, and some end markets can be cyclical. But with a stronger balance sheet, ongoing buybacks, rising distributions, and a business tied to essential industrial demand, Chemtrade looks like the kind of dividend stock that can keep rewarding patient investors for years. Meanwhile, investors can earn massive income from this dividend stock even with $7,000.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CHE.UN | $14.59 | 479 | $0.72 | $344.88 | Monthly | $6,988.61 |
Bottom line
If you want one Canadian dividend stock that is down from its high but still looks built to last, Chemtrade makes a strong case. It has a dependable business, improving cash flow, a sensible valuation, and a growing monthly payout. That is a very attractive mix. Sometimes a forever stock does not look flashy. Sometimes it just keeps doing the work.
