income trust
Most oil royalty trusts have converted to regular corporations, but many are still worth considering as investments
North West Company Inc. $28.42, symbol NWC on Toronto (Shares outstanding: 48.5 million; Market cap: $1.4 billion; www.northwest.ca), sells food and everyday products and services through 225 stores, mainly in northern communities across Canada and Alaska. It also operates stores in remote regions of Hawaii, the South Pacific and the Caribbean. North West converted from an income trust to a conventional corporation on January 1, 2011. In 2002, North West and privately held Giant Tiger signed a 30-year agreement that grants North West the exclusive right to open and operate Giant Tiger stores in Western Canada. Ottawa-based Giant Tiger operates over 200 discount stores that sell value-priced clothing, food and seasonal merchandise....
Ag Growth International Inc. symbol AFN on Toronto is a leading maker of portable & stationary grain-handling, storage & conditioning equipment.
Ag Growth International Inc., $29.09, symbol AFN on Toronto (Shares outstanding: 14.4 million; Market cap: $418.3 million; www.aggrowth.com), is a leading maker of portable and stationary grain-handling, storage and conditioning equipment. The company is based in Winnipeg. Ag Growth sells its products through dealers and distributors in Canada and the U.S., as well as overseas, including Russia, Ukraine and Kazakhstan. It gets 44% of its sales from the U.S., followed by Canada (34%) and international markets (22%). The company started out as an income trust. It first sold units to the public at $10 each and began trading on Toronto in May 2004. In June 2009, it converted to a corporation and changed its name from Ag Growth Income Fund to Ag Growth International....
Medical Facilities Corp., $15.65, symbol DR on Toronto (Shares outstanding: 31.3 million; Market cap: $487.8 million, www.medicalfacilitiescorp.ca), owns majority interests in four specialty surgical hospitals in South Dakota, Oklahoma and Arkansas, as well as an ambulatory surgery centre in California. The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures. Their revenue comes from fees they charge for the use of their facilities. The ambulatory surgery centre specializes in outpatient surgical procedures. Patients typically stay in this facility for less than 24 hours. On June 4, 2015, the company sold its 65%-owned Dakota Plains Surgical Center in South Dakota for $33.8 million. Medical Facilities’ share of the gain on the deal was $9.3 million after tax....
An improved U.S. housing market helps Canadian growth stock Hardwood Distribution, but we view this stock as a very aggressive investment.
Hardwoods Distribution Inc., $16.99, symbol HWD on Toronto (Shares outstanding: 16.7 million; Market cap: $280.9 million; www.hardwoods-inc.com), is one of North America’s largest distributors of high-grade hardwood lumber and plywood. The company mainly purchases these products from hardwood lumber mills and sells them in the home construction, renovation and institutional markets. It operates through 33 distribution centres across Canada and the U.S. Hardwoods converted from an income trust to a conventional corporation in July 2011....
Our outlook for Canadian dividend stock Freehold Royalties as it maintains a high yield while buying up oil and gas properties.
Our take on whether Germany’s demand for more wind power will keep cash flowing for high-yielding Canadian dividend stock Northland Power.
Northland Power Inc., $15.92, symbol NPI on Toronto (Shares outstanding: 168.2 million; Market cap: $2.7 billion; www.northlandpower.ca), develops, builds, owns and operates natural-gas-fired power plants, wind farms, solar projects and hydroelectric facilities. The company converted to a corporation from an income trust on January 1, 2011. Northland owns or has stakes in 1,345 megawatts of operating generating capacity, with an additional 1,072 megawatts (692 megawatts net to Northland) under construction....