High-yielding buys for aggressive investors

Article Excerpt

CHEMTRADE LOGISTICS INCOME FUND $14.03 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics.com; Units outstanding: 30.7 million; Market cap: $430.3 million; Dividend yield: 8.8%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base-metal processors. These companies create sulphur, acid and other by-products as part of their processing activities. Chemtrade converts these by-products into useful chemicals, like sulphuric acid. It also makes chemicals, such as sodium chlorate. In the three months ended December 31, 2010, Chemtrade’s cash flow per unit fell 31.7%, to $0.28 from $0.41 a year earlier. However, the decline was mostly because a fire forced Chemtrade to shut down its plant in Beaumont, Texas. High distribution appears safe Chemtrade pays a $0.10 monthly distribution, which yields a high 8.5% on an annualized basis. The fund pays out roughly 76% of its cash flow to unitholders. Chemtrade plans to continue operating as an income trust. That’s because it believes…