- Methanex had a rough start to 2020 like almost all companies and demolished their dividends but they were already seeing a recovery beginning by the end of the year.
- Thankfully, this has continued into the first quarter of 2021 with a full recovery underway, which has seen their underlying operating cash flow surge over 60% year on year.
- The future outlook for methanol is positive in the medium to long term, which should support this recovery and thus allow them to keep generating ample free cash flow.
- If this recovery is sustained, their estimated free cash flow yield could be upwards of a massive 15% and thus allow for surging future dividends.
- Given their very solid recovery and prospects for shareholders to be rewarded handsomely in the future, I believe that upgrading to a bullish rating from neutral is now appropriate.
For further details see:
Methanex: Full Recovery Underway, Positive Outlook Allows For Surging Future Dividends