Distributors usually are low margin business. I always thought that Neratel and ECS Holdings is like one of them. Recently, I discovered another one called Multi-chem.

While folks looking for dividends may like ECS when they were yielding 7.5% and Multi Chem when they are currently yielding 8%, how safe is your dividends?

Multi-chem

You might not know Multi-chem but IT industry folks will know their subsidiary MTECH, which is a rather wide distributor of security and networking products such as Checkpoint, Riverbed and Splunk among other things.

The dividend yield on Multi-Chem looks good. Based on the 1.1 cent dividend and at a price of 13.4 cents, that comes up to 8% yield.

The company is Net Cash as well.

With a profile like this it makes a potential good dividend play. It gets better when you realize that their IT business grew even in ...