DUNDEE REIT $32.85 (Toronto symbol D.UN; TSINetwork Rating: Speculative) (416-365-3535; www.dundeereit.com; Shares outstanding: 38.9 million; Market cap: $2.0 billion; Dividend yield: 6.7%) owns and manages 14.7 million square feet of office, industrial and retail space. The trust has a high 96.1% occupancy rate.
In the three months ended March 31, 2011, Dundee’s revenue rose 57.4%, to $91.0 million from $57.8 million …read more »
Chemtrade Logistics Income Fund, symbol CHE.UN on Toronto, is one of North America’s largest suppliers of sulphuric acid, sulphur, liquid sulphur oxide and sodium hydrosulphite. It also supplies sodium chlorate, phosphorous pentasulphide and zinc oxide. In addition to selling chemicals, Chemtrade processes spent acid.
We analyze Chemtrade in Stock Pickers Digest, our newsletter for aggressive investing.
In the three months ended March …read more »
Chemtrade Logistics Income Fund, symbol CHE.UN on Toronto, is one of North America’s largest suppliers of sulphuric acid, sulphur, liquid sulphur oxide and sodium hydrosulphite. It also supplies sodium chlorate, phosphorous pentasulphide and zinc oxide. In addition to selling chemicals, Chemtrade processes spent acid.
Chemtrade has three divisions: the Sulphur Products and Performance Chemicals division supplies 54.5% of the income trust’s …read more »
Ottawa’s new tax on income trusts came into effect nine days ago, on January 1, 2011.
The new tax puts income trusts on an equal footing with regular corporations. Some income trusts converted to conventional corporations before the new tax came into effect, or plan to do so in the coming months. Others will continue to operate as trusts.
(In light …read more »
PENGROWTH ENERGY TRUST $12.96 (Toronto symbol PGF.UN; Units outstanding: 320.1 million; Market cap: $4.1 billion; TSINetwork Rating: Average; Divid. yield: 6.5%; www.pengrowth.com) will convert to a dividend-paying corporation on January 17, 2011. It will then trade as Pengrowth Energy Corporation under the symbol “PGH”.
Pengrowth has $2.7 billion of tax pools it can use to offset income taxes. It expects to …read more »
ARC ENERGY TRUST $25.59 (Toronto symbol AET.UN; Units outstanding: 275.9 million; Market cap: $7.0 billion; TSINetwork Rating: Speculative; Dividend yield: 4.7%; www.arcresources.com) will convert to a dividend-paying corporation on January 17, 2011. It will then trade as ARC Resources Ltd. under the symbol “ARX”.
ARC has $2.2 billion of tax pools it can use to offset income taxes. That will let …read more »
CHEMTRADE LOGISTICS INCOME FUND $14.04 (Toronto symbol CHE.UN; SI Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 30.7 million; Market cap: $431.0 million; Dividend yield: 8.5%) is one of North America’s largest suppliers of sulphuric acid, sulphur, liquid sulphur dioxide and sodium hydrosulphite. It also supplies sodium chlorate, phosphorous pentasulphide and zinc oxide. In addition to selling chemicals, Chemtrade processes spent acid.
Chemtrade …read more »
BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $26 (Toronto symbol BA.UN, Conservative Growth Portfolio, Utilities sector; Units outstanding: 127.4 million; Market cap: $3.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 11.2%; SI Rating: Above Average) provides telephone services in Atlantic Canada, as well as rural parts of Ontario and Quebec.
BCE owns about 45% of Bell Aliant. At current prices, it would cost …read more »
CAPITAL POWER INCOME L.P. $18.80 (Toronto symbol CPA.UN; Shares outstanding: 55.1 million; Market cap: $1.0 billion; SI Rating: Extra Risk; Dividend yield: 9.4%) has interests in 20 power plants in Canada and the U.S.
These facilities generate a total of 1,378 megawatts, and are mostly natural-gas fired. Capital Power sells all of its power under long-term contracts.
In the three months ended …read more »
Canadian income trusts have always involved far more risk than most investors realize. This is why we’ve recommended so few of them over the past few years.
2011 tax has changed the outlook for many Canadian income trusts
Ottawa’s new tax on Canadian income trusts comes into effect just over three months from now, on January 1, 2011. Many income trusts …read more »
Income trusts are investments that hold income-producing assets. Their units trade on stock exchanges, but they flow much of their income through to unitholders as “distributions.” This means many trusts pay little or no tax, though the Canadian government plans to begin taxing trust distributions in 2011. Investing in trusts can be risky, as the businesses that underpin them may have steady cash flow, but could stagnate as the economy changes. Pat McKeough believes investors should look for trusts with low capital expenditures and mature businesses.
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