Comments

    • Re: 130%. My mistake; that was from a page with outdated data.
      Getting data on P/E ratios is easy. Getting dividend payout ratio data is very difficult! Different websites give wildly different results for this figure.
      Examples of results for Chemtrade:
      http://www.marketbeat.com/stocks/TSE/CHE_UN/dividend: 666%
      morningstar.ca/ca/report/stocks/dividends.aspx?t=0P000080FU: 923%
      ca.investing.com/equities/chemtrade-logistics-income-fund-ratios: 51%
      seekingalpha.com/symbol/CGIFF/dividends/dividend-safety: – 24% (that’s a “minus” sign!)

    • TSI Research 

      Chemtrade offers investors diversified exposure to North American industrial chemicals. As well, demand for most of its products remains strong, and the fund should benefit as customers renew their contracts at higher prices. The company continues to pay a monthly distribution of $0.10 a unit. The annual rate of $1.20 yields a very high 11.5%. For all of 2019, the company will probably generate cash flow of $1.45 a unit, and the stock trades at 7.2 times that forecast.

      We see Chemtrade Logistics Income Fund as a buy.

      Meanwhile, we think the best measure for companies in some industries is cash flow per share, rather than earnings per share.

      Earnings per share includes a number of non-cash items such as depreciation and amortization or depletion….and earnings are not always an accurate reflection of a company’s health or ability to pay its dividend.

      The best examples of this are real estate and resource firms, including oil and gas. For example, real estate companies are not as concerned as industrials in putting profits aside to replace depreciated/obsolete plant and equipment…they can buy a new property and take out a new mortgage.

      We do look at earnings per share…but we find (as do the majority of analysts, brokers and so on) that cash flow per share is a better measure in some cases.

    • TSI Research 

      Thanks for your question. We don’t cover Empire Co. in any of our newsletters — but we may look at in the future in response to a question from a member of our Inner Circle.

  • Why are you running an article from Oct 2019 with a buy rating while it is now a hold/sell. This is not the first time this has happened.

    • TSI Research 

      Thanks for spotting that in our free Daily advice! Subscribers to our newsletters got our latest sell advice—but we should have updated the free email advice as well…..

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