How Safe Is Braskem and Its 3.2% Dividend Yield?

I have long been intrigued by the potential for awesome returns from stocks that call Brazil home. The country has experienced tremendous growing pains in recent years spanning political scandals and economic recession. However, several companies with global ambitions that have been swept up in the misery have made solid arguments for long-term investing potential.

Braskem (NYSE: BAK) has been at the top of my list. As the largest petrochemical manufacturer in Brazil, and the largest renewable-chemicals manufacturer in the world, the company has a solid foundation to build upon. The latest strategic vision for long-term growth calls for intelligent expansion in North and South America to diversify feedstock capabilities away from crude oil derivatives and toward cheaper shale natural gas. It promises to pay off handsomely.

Then again, the company hasn't been making investors wait to reap rewards: It has trounced the S&P 500 in recent years and pays a dividend that last yielded 3.2%. I say "last yielded" because the annual April payment was postponed (for good reason) this year. That raises the question: How safe is Braskem stock and and its dividend?

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Source: Fool.com