Entering text into the input field will update the search result below

Methanex: Dividends Surging Back As Expected With Plenty More To Follow

Aug. 01, 2021 1:50 PM ETMethanex Corporation (MEOH), MX:CA2 Comments
DT Analysis profile picture
DT Analysis


  • Methanex has increased their dividends by a massive 233% after reducing them to almost nothing during the turmoil of 2020.
  • I have previously expected that their dividends could return and when looking ahead, plenty more should follow.
  • Their operating cash flow during the second quarter of 2021 was even better than during the first quarter as operating conditions recovered.
  • Their new capital allocation strategy aims to build a cash balance of $300m plus whatever is required to fund their Geismar 3 project before further increasing their shareholder returns.
  • Based upon my estimations, they could achieve this goal with one year, and thus given this favorable outlook, I believe that maintaining my bullish rating is appropriate.

Businessman pointing arrow graph corporate future growth plan. Business development to success and growing growth year 2020 to 2021 concept
marchmeena29/iStock via Getty Images


When the turmoil of the Covid-19 pandemic rocked financial markets during 2020, Methanex (NASDAQ:MEOH) took the painful but fiscally conservative decision to reduce their dividends to almost nothing. Now that operating conditions have seen

This article was written by

DT Analysis profile picture
I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (2)

Even with some of the problems...trading 50% lower than May 2018 levels with methane prices at similar levels...seems opportunistic. Guess folks think this will be a very short lived cycle.
Hazy... profile picture

Sadly California believes in Ethanol (Corn Based Alcohol vs Methanol)... and would pay 3X more??? Curiously European Gas has made Methanol extremely Expensive to make in Europe... vs anywhere else on the planet??? I thought China was paying Japanese GAS prices... Euro-prices... $10 per mcf... USD. Nat.Gas is the Essential Building Block... for Ammonia or Methanol... even Corn Ethanol needs GAS for distillation / production??? Meanwhile Mexico or USA lose Billions by Flaring or Gas Leaks... Methanex is struggling to get a steady Gas Supply in New Zealand or Chile or Trinidad? maybe even Egypt? ...just put the Entire Plant on a Barge and move it... It's Bananas but Methanex has done it...

VANCOUVER, BRITISH COLUMBIA—(Marketwire - Jan. 17, 2012) - Methanex Corporation (TSX:MX)(NASDAQ:MEOH)(SANTIAGO:Methanex) announced today that it has secured land in Geismar, Louisiana, and is planning to move one of its idle methanol plants in Chile to this location. Site-specific engineering has begun and the plant is expected to be operational in the second half of 2014.
Why Build Geismar 3 when Trinidad is just over there...? NO Gas? Plant has been Idle for YEARS... Ditto Chile... running at 50%
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About MEOH

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on MEOH

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.