Staying Away From Albemarle And Its Weak Dividend Coverage

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About: Albemarle Corporation (ALB)
by: Valuentum
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Valuentum
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Summary

Albemarle is aggressively growing its lithium operations at a time when prices for lithium are quite low.

Negative free cash flows and a growing net debt load, a product of Albemarle's growth ambitions, are stressing its dividend coverage.

We are staying away from Albemarle as there's an elevated chance its dividend might get cut in the medium-term.

Image Shown: Albemarle Corporation is betting heavily on lithium and lithium products to support its growth trajectory. Image Source: Albemarle - September 2019 IR Presentation

By Callum Turcan

Albemarle Corporation (ALB) is a