Investing in Canadian monthly dividend stocks feels a little more rewarding to me. Instead of waiting every quarter for cash to arrive, we get paid more often, which could be useful for income planning or simple reinvestment. That is why I keep looking for a monthly-paying stock with a solid yield for my portfolio, especially when the business also has steady cash flow and clear growth plans.
Chemtrade Logistics Income Fund (TSX:CHE.UN) is a good example of such a monthly-payer right now. While it may not be a very popular stock on the TSX today, its 4.3% dividend yield, recent share price strength, and capital-return focus make it interesting.
In this article, I’ll talk about why Chemtrade could appeal to many Foolish investors seeking monthly income and long-term value.
Source: Getty Images
A monthly dividend stock worth a closer look
The monthly payout is only one factor that makes Chemtrade one of my favourite monthly dividend stocks, as the business behind the payout looks solid as well. If you don’t know it already, the company mainly provides industrial chemicals and services to customers across North America and is also a leading producer of high-purity sulphuric acid for the semiconductor industry. Its operations span acid and sulphur products, water solutions, and electrochemicals, giving it exposure to several essential industrial markets.
Chemtrade stock currently trades at $16.85 per share with a market cap of about $1.9 billion. Besides offering a 4.3% annualized dividend yield with monthly distributions, this stock has also rewarded shareholders with solid capital gains. The stock has risen about 14% year to date and nearly 49% over the last year.
What has been driving the business
The recent momentum in this monthly-paying TSX stock has been supported by steady business execution despite some market challenges. In the first quarter of 2026, Chemtrade’s revenue climbed nearly 8% year-over-year (YoY) to $503 million. This increase was mainly driven by the Polytec acquisition in its Water Solutions business, along with higher selling prices for merchant acid, sulphur products, and Regen acid in its Acid and Sulphur Products segment.
However, the company’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 5.5% YoY to $113.5 million. Lower selling prices and volumes for chlor-alkali products and sodium chlorate weighed on results in the Electrochemicals segment. Nevertheless, its operating cash flow jumped 23.3% from a year ago to $42.4 million with the help of lower working capital requirements. That cash generation continues to support its monthly distributions.
Why it remains an attractive monthly dividend stock
During the first quarter, Chemtrade increased its monthly distribution by about 4% to $0.06 per unit, or $0.72 annually. More importantly, its payout ratio remained at a manageable 51% for the quarter and 38% over the last 12 months.
In addition, the company strengthened its balance sheet by redeeming all of its remaining convertible debentures by the end of June. This move is expected to simplify its capital structure by removing dilutive securities while increasing its focus on returning capital to shareholders.
Moreover, despite ongoing volatility in some chemical markets, Chemtrade reaffirmed its 2026 adjusted EBITDA guidance of $485 million to $525 million. It also continues to invest in water solutions projects and other organic growth initiatives under its Vision 2030 strategy, which targets an annual adjusted EBITDA of $550 million to $600 million by 2030.
Given these positive factors, Chemtrade looks like a solid choice for investors looking for a monthly-paying TSX stock with a reliable income stream and long-term growth potential.
