Introduction
After seeing their dividend survive the global financial crisis in 2008-2009, Methanex (MEOH) recently found it appropriate to reduce them by a massive 90%. Even though this now sits in the rear-view mirror, analyzing their situation can still provide insights into the probability of it being reinstated and even more importantly, if this is actually a warning sign of worse pain to come.
Distribution Coverage
When assessing distribution coverage, I prefer to forgo using earnings per share and use free cash flow instead, since distributions are paid from cash and not from