- Methanex might not seem like a desirable dividend opportunity on the surface but when digging deeper, this appears poised to change as soon as early 2022.
- They have seen their recovery accelerate during the third quarter of 2021 with their operating cash flow surging almost 100% year-on-year.
- This provides ample free cash flow to fund higher dividends, which are planned once their cash balance hits $1.15b.
- They are not far off this goal and should reach it within the next two quarters, thereby seeing all of their free cash flow returned.
- Depending upon the split between dividends and share buybacks, this may see a very high dividend yield of 10% and thus I believe that my bullish rating is appropriate.
For further details see:
Methanex: An Exciting 10% Yield May Follow As Soon As Early 2022