Q: Hello, I'm down quite a bit on CHE and am thinking about averaging down. Everything I've been able to find seems to suggest they're a good buy. I'm wondering if you have any thoughts on them. Thanks.
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
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AltaGas Ltd. (ALA)
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Chemtrade Logistics Income Fund (CHE.UN)
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American Hotel Income Properties REIT LP (HOT.UN)
Q: Good day!
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul
Q: Another source has made the following comments:
Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.
In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.
I know you aren't happy with its past performance but it looks like it's getting very attractive for income?
Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.
In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.
I know you aren't happy with its past performance but it looks like it's getting very attractive for income?
Q: Would you hold che.un for income? Is there concern that the dividend is not sustainable. Currently the dividend rate of return is in excess of 9%.
Q: Can you please provide your opinion on this one? Hold or sell?
Thanks as always...
Thanks as always...
Q: Good day gentlemen,
Has anything changed with regards to fundamentals that can justify a move from 20 to 13 since beginning of the year?
Is there a price where you consider this a must own or at least compelling value?
Thx for your valued insight.
Has anything changed with regards to fundamentals that can justify a move from 20 to 13 since beginning of the year?
Is there a price where you consider this a must own or at least compelling value?
Thx for your valued insight.
Q: I am contemplating selling CHE.un and putting the proceeds into ARE, would you consider this a good move . I will have a loss on CHE and it seems doubtful that this stock is going to have any significant upside any time soon.
Thank you
Thank you
Q: I am sitting with a 20% loss - would you sell, hold or buy more. Please elaborate on you recommendation
Q: Hello,
My reading of Morningstar.ca shows dividends have been the same at $1.20 since 2012, which would at least suggest consistency.
Today's price has fallen below the 2016 lows. What are the chances of a cut in dividend?
My reading of Morningstar.ca shows dividends have been the same at $1.20 since 2012, which would at least suggest consistency.
Today's price has fallen below the 2016 lows. What are the chances of a cut in dividend?
Q: Thoughts on chemtrade logistics results?
Q: Hello, in a recent answer to a question on chemtrade, you referred to it as a cyclical stock. Please explain what a cyclical stock is and why you consider this stock in this manner. Also I assume, it is in a downward cycle currently, when would you guess the upward cycle would begin.
Q: Hi Peter,
Currently own CHE.UN - have been following your comments/answers & appreciate your answer to my previous question re: 4.6% drop on Aug 8
Your comments "stock not cheap" (P/E is 15 = not bad?), dividend not increased in 10 yrs (but currently 8% = pretty good & sustainable), downgraded by Desjardins from $19 > $17 (but currently trading at $14.7 = undervalued?) with 3 yr price range between $15-$20
That said, what is your outlook for CHE.UN and would you consider a BUY (more for income vs. growth perhaps?) - if not, why?
BTW - have made money on most of your insights - THANK YOU
Currently own CHE.UN - have been following your comments/answers & appreciate your answer to my previous question re: 4.6% drop on Aug 8
Your comments "stock not cheap" (P/E is 15 = not bad?), dividend not increased in 10 yrs (but currently 8% = pretty good & sustainable), downgraded by Desjardins from $19 > $17 (but currently trading at $14.7 = undervalued?) with 3 yr price range between $15-$20
That said, what is your outlook for CHE.UN and would you consider a BUY (more for income vs. growth perhaps?) - if not, why?
BTW - have made money on most of your insights - THANK YOU
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AT&T Inc. (T)
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H&R Real Estate Investment Trust (HR.UN)
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Home Capital Group Inc. (HCG)
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Chemtrade Logistics Income Fund (CHE.UN)
Q: In my diversified portfolio, which of the following in your view are worth holding for income and/or possible capital gains in one year, and which should be sold now, for better opportunities? I do not need the cash nor tax losses. CHE.UN BHC CGX HCG HR.UN SKM(US) AT&T(US). Thank you.
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Enercare Inc. (ECI)
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Chemtrade Logistics Income Fund (CHE.UN)
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Vanguard Dividend Appreciation FTF (VIG)
Q: I am trying to get more exposure in the US via VIG etf.
These 2 companies are the laggards in my portfolio.
I was thinking of letting them go and buying VIG
You say?
Thanks
These 2 companies are the laggards in my portfolio.
I was thinking of letting them go and buying VIG
You say?
Thanks
Q: Any idea why Chemtrade CHE.UN dropped 4.6% today - well ahead of earnings release August 8 ?
Q: would you invest in this company?
Q: I would appreciate your comments about their earnings. My first reaction was a reasonable quarter, but still the stock is down this AM.
Thanks!
Paul
Thanks!
Paul
Q: Do you think there is any danger of this stock cutting it's dividend?
Q: Hello, you recently replied to a question say this stock need not be owned. My view is the same as the last person, but, if I were to sell this stock what would you recommend I replace it with. Thank you, Bill.
Q: Do you see any growth upside to this company. The PE, PB, Dividend, Debt/Cap etc are all good, but the share value is plummeting and I'm missing where there might be growth and share price upside. Your thoughts please ?