Tuesday, June 4, 2019

Buying more SQM to ride the lithium wave.

I bought SQM several years ago and it's been great but recently SQM's price has been falling as analysts fret over the prospect of the lithium supply doubling and as a result the price of lithium being cut in half. They know more than me, I am sure, so let's say they're right and big lithium producers basically see flat revenues for a few years (something I doubt), so what? SQM pays a dividend of nearly 7%. That is one juicy dividend for a financially solid company operating at a profit in a growing market. Of course, the last time I bet on a stock for the dividend it was Cable and Wireless, which went bankrupt. But it's different this time, right? Right? Knocking on wood...

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