monthly dividend

Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. Today we look at how growth by acquisition is working for two pipeline companies we cover regularly in our advisory on conservative investing, Canadian Wealth Advisor. ...

Chesswood Group, $16.00, symbol CHW on Toronto (Shares outstanding: 10.0 million; Market cap: $159.4 million; www.chesswoodgroup.com), is the successor to the Chesswood Income Fund. It mainly operates in the specialty finance industry. The company started out in the automotive business, where it leased vehicles and ran car dealerships. It continues to own Acura Sherway in Toronto, one of Canada’s larger Acura dealers, in addition to online new and used car dealer cars4U.com. Chesswood’s largest division is Pawnee Leasing Corporation, located in Fort Collins, Colorado. Pawnee provides micro-ticket leasing across the U.S. This type of leasing serves the needs of smaller, start-up businesses with no or poor credit histories. Chesswood typically finances items under $75,000....

Growth by acquisition can be risky, as newly purchased companies may develop unforeseen problems, especially in an unsettled economy. But Pembina lowered that risk with last year’s purchase of a rival in a business where it’s already a leader. Pembina will now focus on building its own projects....

PENGROWTH ENERGY $6.57 (Toronto symbol PGF; Shares outstanding: 517.7 million; Market cap: $3.4 billion; TSINetwork Rating: Average; Dividend yield: 7.3%; www.pengrowth.com) has gained over 31% since early July 2013. That’s mainly because the company has successfully completed its plan to sell some of its less important oil and gas properties in Western Canada.

The cash from these sales will help Pengrowth speed up the development of its Lindbergh oil sands project in Alberta. As well, the company’s monthly dividend of $0.04 a share still seems safe and has a 7.3% annualized yield.

Pengrowth is a buy.
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WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions). Wajax operates through 128 dealerships across Canada. Its customers are in the natural resource, construction, manufacturing, industrial processing and transportation industries....

WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).

The company’s customers are in the resource, construction, manufacturing and transportation industries.

In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier....

Twin Butte Energy, $2.21, symbol TBE on Toronto (Shares outstanding: 342.1 million; Market cap: $755.8 million; www.twinbutteenergy.com), produces oil and gas in western Canada with a focus on the greater Lloydminster area along the Alberta and Saskatchewan border. Its output is 87% oil and 13% gas. In the three months ended June 30, 2013, Twin Butte produced 16,849 barrels of oil equivalent per day, up 18.7% from 14,193 barrels a year earlier. Despite the increase in production, Twin Butte’s cash flow fell 2.1%, to $33.1 million from $33.8 million. Cash flow per share fell 27.8%, to $0.13 from $0.18, on more shares outstanding. The lower cash flow was the result of sharply higher expenses as the company shifts into more costly oil production and away from natural gas. It also incurred higher road repair and other maintenance costs after unusually heavy rain and snow run-off....

Pat McKeough responds to many requests from members of his Inner Circle for specific advice on stocks as well as questions on investment strategy and the economy. Every week, his comments and recommendations on the most intriguing questions of the past week go out to all Inner Circle members. And each week, we offer you one of the highlights from these Q&A sessions. While we reserve our buy-hold-sell advice for Inner Circle members, these excerpts provide a great deal of information and analysis on stocks we’ve covered for members of Pat’s Inner Circle....

WAJAX CORP. $35.72 (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (905-212-3300; www.wajax.ca; Shares outstanding:16.7 million; Market cap: $601.2 million; Dividend yield: 6.7%) sells and services cranes, forklifts and other heavy equipment. It also provides related parts (such as bearings, motors, hoses and fittings) and power systems (including diesel engines and transmissions).
< br /> The company’s customers are in the resource, construction, manufacturing and transportation industries.
< br /> In the three months ended September 30, 2013, Wajax’s revenue declined 5.0%, to $338.5 million from $356.4 million a year earlier. Earnings fell 28.6%, to $11.5 million, or $0.69 a share, from $16.2 million, or $0.97.
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PENGROWTH ENERGY $6.57 (Toronto symbol PGF; Shares outstanding: 517.7 million; Market cap: $3.4 billion; TSINetwork Rating: Average; Dividend yield: 7.3%; www.pengrowth.com) has gained over 31% since early July 2013. That’s mainly because the company has successfully completed its plan to sell some of its less important oil and gas properties in Western Canada.

The cash from these sales will help Pengrowth speed up the development of its Lindbergh oil sands project in Alberta....