These two industrials offer high yields

Article Excerpt

CHEMTRADE LOGISTICS INCOME FUND $9.68 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units o/s: 92.6 million; Market cap: $872.3 million; Divd. yield: 12.4%) is one of the largest removal-service providers for resource firms that create acids and sulphur as byproducts. The trust converts (and sells) these substances into useful chemicals such as sulphuric acid. Many of its removal contracts are with oil refineries and base-metal processors. In the quarter ended December 31, 2018, revenue rose 1.1%, to $390.8 million from $386.8 million a year earlier. That missed the consensus forecast of $391.8 million. Cash flow per share gained 17.8%, to $0.53 (or a total of $48.7 million) from $0.45 (or $41.4 million). The latest cash flow figure excludes a $90.0 million writedown of Chemtrade’s water-treatment-products business due to its declining profitability. The company offers investors diversified exposure to North American industrial chemicals, while generating stable cash flows to support its high dividend. As well, demand for most of Chemtrade’s products remains strong,…

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