Income Funds
Income funds are mutual funds that focus their investment strategy on fixed-income generating investments such as bonds and high dividend yielding common and preferred shares. The goal of these funds is to generate a continual stream of income for investors.
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 $14.34 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units
outstanding: 30.7 million; Market cap: $439.8 million; Dvd. yield: 8.4%) has agreed to buy Marsulex (Toronto symbol MLX) for $419.5 million.
Marsulex provides environmental services that include controlling air quality and treating and handling industrial byproducts and hazardous waste. The company also makes and sells chemicals.
Marsulex nicely …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 »
BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $26.30 (Toronto symbol BA.UN: SI Rating: Above Average) plans to spend $60 million to convert its network, which connects 70,000 homes and businesses in Saint John and Fredericton, New Brunswick, to fibre-optic cable.
Switching to fibre-optic cable will allow for faster Internet downloads. It will also let Bell Aliant sell an Internet-based television service to …read more »
HOME CAPITAL GROUP INC. $38 (Toronto symbol HCG; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 34.5 million; Market cap: $1.3 billion; SI Rating: Extra risk) is the parent company of Home Trust Company, a federally regulated trust company that specializes in residential first mortgages to small business owners, the self-employed and others who don’t meet the stricter criteria of larger, …read more »
Home Capital is a leader in its field of first mortgage lending to Canadian borrowers who do not meet the lending requirements of major banks. However, Home Capital’s conservative lending practices have let it avoid the subprime mortgage problems that have hurt similar lenders in the United States. For example, as part of the company’s assessment process, its employees personally …read more »
