High yields add to their appeal

Article Excerpt

CHEMTRADE LOGISTICS INCOME FUND $19.98 (Toronto symbol CHE.UN; TSINetwork Rating: Speculative) (416-496-5856; www.chemtradelogistics .com; Units outstanding: 68.6 million; Market cap: $1.4 billion; Dividend yield: 6.0%) is one of North America’s largest providers of removal services for resource firms, such as oil refineries and base metal processors, whose operations create sulphur, acid and other by-products. Chemtrade converts these substances into useful chemicals, like sulphuric acid. In the three months ended March 31, 2015, the company’s revenue rose 22.5%, to $326.0 million from $266.1 million a year earlier. Big acquisition working out well The gain mainly came from the extra month of revenue from General Chemical, which Chemtrade bought for $900 million U.S. at the end of January 2014. General makes a range of chemicals, including aluminum sulphate, aluminum chlorohydrate and ferric sulphate (all of which are used in water treatment), as well as ingredients for prescription drugs, nutritional supplements and veterinary products. Chemtrade’s cash flow jumped to $41.7 million, or $0.61…

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