Editor’s Note: In Brief is the executive summary of the December 2011 issue of Canadian Edge. Please use it as a guide to reading the issue. — RC

The broad-based MSCI Canada Index is down 10.4 percent year to date in US dollar terms, including dividends. Meanwhile, the Canadian Edge Conservative Holdings are in the black by 9.4 percent, and the Aggressive Holdings are down 4.1 percent, including positions closed out this year.

Those figures, however, mask a huge divergence in performance of individual stocks. For example, 23 CE Portfolio positions have thrown off positive total returns this year. Of those, 18 have gained more than 10 percent and half a dozen are up over 40 percent.

In fact, price has emerged as a major problem for would-be buyers of these stocks–including AltaGas Ltd (TSX: ALA, OTC: ATGFF), Keyera Corp (TSX: KEY, OTC: KEYUF) and Pembina Pipeline Corp (TSX: PPL, OTC: PBNPF).

Fearful investors have bid them up as safe havens in a rough market, and all three now sell above my buy targets.

In the other Canada, we’ve had three true blow-ups in 2011–i.e. losses of at least 50 percent. The last of these is Capstone Infrastructure Corp (TSX: CSE, OTC: MCQPF), whose dividend cut warning I highlighted in a Dec. 6 Flash Alert.

All three of these are now out of the model Portfolio, with Capstone departing as of this issue (see Portfolio Update).

Other stocks, however, have fared poorly this year, despite solid underlying business performance. That includes several that increased dividends, such as High Yield of the Month Davis + Henderson Income Corp (TSX: DH, OTC: DHIFF). Its shares are down 25 percent this year, despite consistent double-digit cash flow growth and a 3.3 percent dividend boost.

Atlantic Power Corp (TSX: ATP, NYSE: AT) shares have dropped nearly 15 percent since Jun. 20, when the company announced its now-completed acquisition of the former Capital Power LP. That’s despite a relatively smooth merger process, now locked in financing and a 4.6 percent dividend increase effective with the Dec. 30 payment. Just Energy Group Inc (TSX: JE, OTC: JSTEF), meanwhile, has lost a third of its value since Jun. 30, despite continuing to report solid results and repeatedly affirming the safety of its dividend.

Welcome to the two Canadas. Just as in the US, dividend-paying stocks deemed “safe” by investors are being bid to new heights. Meanwhile, stocks perceived risky are cast aside and driven down to new lows, recovering only when they prove their strength to enough buyers.

Despite the extreme market volatility and worries about the eurozone crisis, several CE picks have staged massive recoveries from the year’s lows. Bird Construction Inc (TSX: BDT, OTC: BIRDF), for example, is up 40 percent from early autumn lows, as the acquisition of O’Connell has pushed up orders and earnings. Parkland Fuel Corp (TSX: PKI, OTC: PKIUF) is up 65 percent from early October, a point where some investors assumed its price drop meant a dividend cut was imminent.

Provident Energy Ltd (TSX: PVE, NYSE: PVX) was given up for dead by many in late summer before rallying 40 percent-plus. So was EnerCare Inc (TSX: ECI, OTC: CSUWF), now trading at an all-time high after surging more than 40 percent off its low. So was Newalta Corp (TSX: NAL, OTC: NWLTF), now also 40 percent up from its low. Even Colabor Group Inc (TSX: GCL, OTC: COLFF) has been able to regain a double-digit share price after what some assumed was a death-dive earlier this year.

All of these companies were still performing well as businesses when their stocks were touching bottom this year. What changed was investors’ perception of their dividend risk shrank markedly.

Looking back, it’s difficult to pinpoint a catalyst that turned a downtrend into an uptrend. But it is clear that the more these stocks recovered, the more buying picked up, and the higher share prices went. It’s literally the mirror image of what fueled the selling on the way down. Mainly, lower share prices undermined investors’ resolve and more sold, driving down prices further still.

All of these stocks hit their nadir right around the time Yellow Media Inc (TSX: YLO, OTC: YLWPF) collapsed. Fear of getting caught with another Yellow induced many investors to unload anything that smelled of risk. As a result, they sold good stocks low, only to watch them recover in a matter of weeks.

To be sure, some companies that sell off do eventually crack. I was caught by Capstone, as were most other analysts given the 33 percent drop the day of the guidance announcement. And unfortunately, we’re likely to see more such blowups as long as the North American economy is growing slowly and Europe is a threat to global credit markets.

Fortunately, the only way such a position can really hurt you is by investing more all the way down. And I can’t advise more strongly against such an inherently emotional and self-destructive strategy.

Diversification and portfolio balance–much more than wise selection or luck–are why the CE Portfolio is still up for the year, despite three real blowups. They’ve literally saved me from mistakes and bad luck, while allowing me to stay in well-run, dividend-paying companies despite what’s still one of the toughest markets in memory.

Portfolio Action

I’m making four moves to the Canadian Edge Portfolio this month. First, as noted above, I’m selling Capstone Infrastructure Corp (TSX: CSE, OTC: MCQPF).

The company hasn’t cut its monthly dividend of CAD0.055 per share yet. But management dramatically reduced its guidance for 2012 cash flow from what it laid out just three weeks earlier in its third quarter conference call. During that call management mentioned only one major risk that could change projections: a poor outcome in negotiations with the Ontario Power Authority for re-contracting the Cardinal power plant.

In contrast, the Dec. 6 announcement cited several reasons never mentioned, including a recapitalization of the Swedish district heating unit, an increase in capital costs at the 70 percent-owned Bristol Water unit and unexpected costs at several power plants, including Cardinal. Moreover, while a dividend cut was threatened, there was no indication of what it might be.

This is no Yellow Media, with crushing debt obligations and a declining business model. But there’s too much uncertainty to stick with it. Sell Capstone Infrastructure.

Second, I’m selling Daylight Energy Ltd (TSX: DAY, OTC: DAYYF) from the Aggressive Holdings. The company’s shareholders have now approved the takeover by China Petroleum & Chemical Corp, better known  as Sinopec (NYSE: SNP), for CAD10.08 in cash. Meanwhile, the Canadian dollar is again near parity with the US dollar and the premium to takeover has shrunk to a few pennies.

Considering dividends have been suspended, that leaves no reason to stay in this stock, particularly with the slight possibility regulators still may withhold approval. Sell Daylight Energy.

Third, I’m switching Student Transportation Inc (TSX: STB, NSDQ: STB) to the Conservative Holdings from the Aggressive Holdings. Last month the company announced acquisition of Dairyland Bus Inc, adding USD36 million of annual revenue and pushing expected 2012 sales growth to 18 percent from a previous projection of 12 percent.

That’s a pretty clear indication of the company’s ability to take advantage of school systems’ need to outsource bus service in trying economic times. Drawing a CE Safety Rating of 5, Student Transportation is a buy up to USD7.

Finally, I’m adding High Yield of the Month Noranda Income Fund (TSX: NIF-U, OTC: NNDIF) to the Aggressive Holdings. The company is currently undergoing a review of its dividend policy by an independent committee of its board, a move supported by major shareholder Clearwater Capital Management. The likely outcome is a higher payout than the current CAD0.04167 per unit monthly rate.

Economic exposure of the zinc processing industry and uncertainty regarding the review are two reasons for the most conservative investors not to buy this stock. But Noranda is a buy up to USD6 for more aggressive investors.

High Yield of the Month

High Yield of the Month features the two best buys for December. If you’re starting a portfolio, buying HYOTMs each month is one good strategy, provided the picks meet your own risk-reward preferences. This month’s choices are Conservative Holding Davis & Henderson Income Corp (TSX: DH, OTC: DHIFF) and new Aggressive Holding Noranda Income Fund (TSX: NFI-U, OTC: NNDIF).

Davis + Henderson occupies a secure and fast-growing niche in Canada’s rock-solid financial services industry and is fresh off posting very strong third-quarter earnings. The company has also decisively returned to dividend growth, boosting its quarterly payout by 3.3 percent effective with the Sept. 30 payment. Safe enough for any investor, it rates a 5 on the CE Safety Rating System.

Noranda’s sole asset is a royalty interest in a zinc processing facility operated by parent Xstrata Plc (London: XTA, OTC: XSRAF). The unconverted income trust restored a dividend at the monthly rate of CAD0.04167 per unit, effective with the Oct. 25 payment. Third-quarter results strongly support the payout, with free cash flow covering by more than a 4-to-1 margin.

Noranda has now launched a review to determine the availability of funds for future distributions, overseen by an independent committee. This is largely the result of pressure from shareholders and could result in a sizeable increase to the current rate. Noranda’s exposure to commodity price swings (mainly for zinc and its various byproducts) means it rates just a 3 under the CE Safety Rating System and is suitable for aggressive investors only.

My buy targets are USD20 for Davis + Henderson and USD6 for Noranda.

Feature Article

Sweet yields can bring sour consequences. That’s because a yield well above the norm indicates greater perceived risk to the dividend. And if those fears prove justified, the resulting dividend cut will usually take the share price down as well. We’ve seen this happen more than once this year to companies in the Canadian Edge coverage universe, as well as the Portfolio.

On the other hand, we’ve also seen high-yield stocks rally strongly, if company performance convinces investors too much risk is being priced in.

The trick is two-fold. First, super-yielding stocks should only be held as part of a diversified portfolio that’s mainly concentrated on safer fare. No one should ever average down in any super-yield stock, or otherwise over-weight them in a portfolio.

Second, you’ve got to do your homework, i.e. know what the principle risks are. And you’ve got to be willing to sell for a loss if your reason for holding the stock goes away. Generally, that means unloading if dividends are cut, or the company’s case for growth is undermined.

This month’s Feature Article examines today’s highest-yielding companies tracked in the Canadian Edge How They Rate coverage universe, all of which currently yield at least 10 percent. I show which I’d focus on and why, as well as which I’d avoid despite the sweet yield.

Canadian Currents

Here’s the latest on the Canada Revenue Agency’s new rule requiring “Canadian payers” to verify the eligibility of non-Canadians to benefit from “tax treaty” reductions to withholding rates from dividends.

Tips on Trusts

This section features short bits on a wide range of topics. For more evergreen and tutorial items, see the Subscribers Guide.

Dividend Watch List–No Canadian Edge How They Rate companies announced dividend cuts last month. As reported in a Dec. 6 Flash Alert, however, CE Conservative Holding Capstone Infrastructure Corp (TSX: CSE, OTC: MCQPF) issued what amounted to a warning that it will cut its dividend sometime in 2012, the consequence of a sharp reduction in its previous cash flow guidance.

GMP Capital Inc (TSX: GMP, GMPXF) CFO Christine Drake answered a question about the company’s inability to earn its dividend in recent quarters by stating were “pretty draconian market conditions” to “persist through Q4,” the company would “look at every aspect of the business.”

Both companies are now on the Dividend Watch List. Capstone Infrastructure is a sell, while GMP Capital is a hold.

InterRent REIT (TSX: IIP-U, OTC: IIPZF), meanwhile, comes off the list after reporting solid third-quarter results. Revenues rose by 9.9 percent, net operating income surged 24.6 percent and funds from operations–REITs’ primary measure of profitability–were up 150 percent from last year. With occupancy rising to 96.6 percent, management has declared the portfolio “stabilized” and is now focusing on growth. Hold.

AvenEx Energy Corp (TSX: AVF, OTC: AVNDF) is also off the list this month. Third-quarter results were outstanding at both the energy production and services (24 percent profit) divisions. The payout ratio fell to just 60 percent, and the company cut its financing costs by 43.9 percent. Revenue rose 152 percent, and funds from continuing operations were up 30 percent, and 5 percent per share. Production rose 31 percent.

Buy AvenEx up to 7 if you haven’t yet. For more on AvenEx, see this month’s Feature Article.

Here’s the rest of the Watch List. Note a few more names have joined the List in the past month, owing to the tightening of my Safety Rating System criteria:

Aston Hill Income Fund (TSX: VIP-U, OTC: BVPIF)–Advice: SELL. The key issue here is still that the payout vastly exceeds investment income. Management can hold it for a long time, but until performance improves investors are better off elsewhere.

Canfor Pulp Products Inc (TSX: CFX, OTC: CFPUF)–Advice: Hold. The company’s payout ratio is over 108 percent. Management is committed to paying out substantially all profits, but these are subject to global pulp prices as well as the price of raw materials.

Chartwell Seniors Housing REIT (TSX: CSH-U, OTC: CWSRF)–Advice: Hold. The company’s numbers are very encouraging, with occupancy now over 90.9 percent portfolio wide. Same property net operating income was up a healthy 4.9 percent and recently announced transactions will spur growth. My only reason for caution now is possible future US health care cost cuts.

Chorus Aviation Inc (TSX: CHR/B, OTC: CHRVF)–Advice: Hold. Management has consistently down played a dispute with Air Canada (TSX: AC/A, OTC: AIDIF) over its cost-sharing arrangement. Air Canada has now proposed deep cuts in the current arrangement that would almost certainly trigger a dividend cut, even though the current payout ratio is quite low at 56 percent.

CML Healthcare Inc (TSX: CLC, OTC: CMHIF)–Advice: Hold. Management last month succeeded in selling its US operations, eliminating a huge drag on profitability. The company says the sale won’t hurt cash flow and that dividends were always financed entirely from the healthy Canadian operations, but I want to see a real quarter of numbers before taking it off the Watch List.

EnerVest Energy & Oil Sands (TSX: EOS, OTC: EOSOF)–Advice: SELL. The average yield of the fund’s top holdings is a fraction of this closed-end fund’s distribution. That’s likely to hold back performance when energy prices rise.

FP Newspapers Inc (TSX: FP, OTC: FPNUF)–Advice: Hold. Third-quarter results were quite weak. Earnings fell 35.6 percent, and distributable cash flow fell 52 percent from year-earlier levels, largely because the company now pays corporate taxes. But circulation revenue fell 4.2 percent, more than offsetting a 17 percent boost in digital advertising revenue. The company doesn’t have the debt problems Yellow Media Inc (TSX: YLO, OTC: YLWPF) does, but the payout ratio has risen to 133 percent.

Freehold Royalties Ltd (TSX: FRU, OTC: FRHLF)–Advice: Hold. The payout ratio rose to 88 percent in the third quarter. As primarily a collector of royalty income from other companies producing on its lands, Freehold doesn’t have the capital costs others do and can afford a higher ratio. But things are moving in the wrong direction.

NAL Energy Corp (TSX: NAE, OTC: NOIGF)–Advice: Hold. The company had another low payout ratio quarter, coming in at just 48 percent. The problem is a 49.3 percent jump in capital spending to reverse a 1.6 percent year-over-year production decline. Management is guiding toward holding the dividend, but skeptics obviously abound.

PetroBakken Energy Ltd (TSX: PBN, OTC: PBKEF)–Advice: Buy @ 10. The company posted a fine third quarter, as a 15 percent boost in year-over-year output lifted funds from operations by a solid 5 percent. Given the volatility of profits in recent quarters, however, I want to see at least one more stable set of numbers before declaring its payout safe.

Precious Metals & Mining Trust (TSX: MMP-U, OTC: PMMTF)–Advice: Hold. The fund is not an income investment but a cash-paying bet on gold and silver mining stocks. I’m bullish, but only for those who understand the risk.

Ten Peaks Coffee Company Inc (TSX: TPK, OTCL SWSSF)–Advice: SELL. The payout ratio came down to 72 percent in the third quarter, as the company has had some success moving its business mix to less volatile areas. The history of this company, however, is that it’s ill-suited to pay big dividends and nothing has changed in that regard.

Bay Street Beat–We take a look at how Canada’s analyst community views the CE Portfolio in the aftermath of third-quarter earnings season.

Tips on DRIPs—Reinvest your dividends paid by New York Stock Exchange-listed Canadian companies–in some cases at a discount and without paying commissions.

How They Rate

CE Safety Ratings are based on six operating and financial criteria. Companies meeting all six criteria are rated my highest rating of “6.” “0” is the lowest rating, indicating companies that meet no safety criteria. Safety criteria are described in the text below the How They Rate table and are as follows:

• One point if Payout ratio meets “very safe” criteria for the sector.
• One point if Payout ratio has longer-term visibility.
• One point if Debt-to-Assets ratio meets “very safe” criteria for the sector.
• One point if the company’s debt maturing before Jan. 1, 2013, is less than 10 percent of its market capitalization.
• One point if the company’s primary business is recession-resistant. Qualifying varies from company to company, though virtually all Electric Power and Energy Infrastructure companies qualify, while no Energy Services companies do.
• One point if the company has not cut its distribution over the preceding five years.

I list trusts and high-yielding corporations by the following sectors:

• Oil and Gas–All energy producers are included here.
• Electric Power–Power generators.
• Gas/Propane–Distributors from propane to packaged ice.
• Business Trusts–A range of businesses involved principally with consumers.
• REITs–All qualified real estate investment trusts.
• Trust Mutual Funds–Closed-end funds holding portfolios of individual trusts.
• Natural Resources–Trusts and corporations that produce resources and raw materials other than oil and gas.
• Energy Services–Trusts and corporations whose main business is providing drilling, environmental or other services to energy producers.
• Energy Infrastructure–Trusts and corporations that own primarily pipelines, processing facilities and other fee-generating assets.
• Information Technology–Trusts and corporations that provide communications, newspaper, directory and other information services.
• Financial Services–Canada’s banks, investment houses and other trusts and corporations feeding that business.
• Food and Hospitality–Trusts and corporations that franchise restaurants, own and operate hotels and manufacture and distribute food and beverages.
• Health Care–Trusts and corporations involved in the medical care and/or supply business.
• Transports–These trusts and corporations ship freight and move passengers by bus, truck, rail or air.

Coverage Changes

There are no new additions or subtractions to the How They Rate coverage universe this month.

Advice Changes

Here are advice changes. See How They Rate for changes to “buy-under” prices.

Bellatrix Exploration Ltd (TSX: BXE, OTC: BLLXF)–To Buy @ 5 from Hold. Third-quarter results demonstrate this company’s success boosting revenue and cash flow by raising production, despite weak natural gas prices. It’s still for speculators, and I don’t anticipate a dividend any time soon.

Canadian National Railway Company (TSX: CNR, NYSE: CNI)–To Buy @ 75 from Hold. Solid third-quarter results have earned the company a boost in buy target, particularly after the results of a very successful debt refinancing.

Capstone Infrastructure Corp (TSX: CSE, OTC: MCQPF)–To SELL from Buy @ 9. Management’s sharp reduction in 2012 guidance just weeks after issuing an upbeat assessment in its third-quarter conference call would be a red flag, even without the tacit warning of a dividend cut to come next year. The fact that no guidance was given to the size of the coming cut will likely hang over the share price for a while, even if this sharp reversal isn’t the sign of something worse to come.

Chorus Aviation Inc (TSX: CHR/B, OTC: CHRVF)–To Hold from Buy @ 5. The dispute with Air Canada (TSX: AC/A, OTC: AIDIF) is heating up over reimbursement of costs. The latest proposal would force a dividend cut if accepted, despite the company’s solid third-quarter results.

CML Healthcare Inc (TSX: CLC, OTC: CMHIF)–To Hold from SELL. The company has unloaded its US operations for about CAD34 million in proceeds to cut debt. What remains to be seen is the impact on overall cash flow and the dividend.

Daylight Energy Ltd (TSX: DAY, OTC: DAYYF)–To SELL from Hold. Shareholders have now approved the takeover by Sinopec for CAD10.08 per share in cash. With the US dollar back to near parity with the Canadian dollar and no dividends until the deal is done, the remaining premium isn’t worth trying to capture.

FP Newspapers Inc (TSX: FP, OTC: FPNUF)–To Hold from Buy @ 5. Third-quarter results were weak, mainly due to taxes, but subscription revenue also dropped 4.2 percent. Distributable cash flow fell by more than half. Improvement will be needed to hold the dividend at current levels.

Medical Facilities Corp (TSX: DR, OTC: MFCSF)–To Hold from Buy @ 12. Third-quarter results were decent and support the dividend, but reimbursement rates from governments now appear more doubtful.

Northland Power Inc (TSX: NPI, OTC: NPIFF)–To Hold from Buy @ 16. The shares continue to trade above my prior buy target. The payout ratio, however, is a growing concern despite management assurances, since cash flow relies on projects in the eurozone as well as Canada.

New Flyer Industries Inc (TSX: NFI, OTC: NFYEF)–To SELL from Hold. Third-quarter results were quite bad, as orders dropped again and free cash flow went negative, with little reason to expect improvement in the near future.

Nexen Corp (TSX: NXY, NYSE: NXY)–To Hold from Buy @ 25. The company’s restructuring effort appears to be more aggressive than once appeared, with USD492 million more in asset sales just announced.

Research in Motion (TSX: RIM, NSDQ: RIMM)–To SELL from Hold. The company hasn’t been able to catch anyone in the global race to develop marketable smartphones. And without a dividend, there’s no reason for anyone to stick around to wait for it to do so, other than a possible takeover.

Superior Plus Corp (TSX: SPB, OTC: SUUIF)–To Buy @ 6 from Hold. The recent dividend cut (see the November Dividend Watch List) has left the current payout rate at a very manageable level, as adjusted operating cash flow per share guidance for 2012 is CAD1.55 to CAD1.90. The share price appears to have stabilized as well, but this is for aggressive investors only.

Ratings Changes

Here are ratings changes, reflecting third-quarter 2011 numbers (now all in and summarized in How They Rate), debt maturities remaining for 2011 and 2012, and recent weakness in energy prices.

Algonquin Power Corp (TSX: AQN, AQUNF)–To 5 from 4. The company’s third-quarter payout ratio fell to just 39 percent, the result of a series of successful investments that are now paying off in higher cash flow.

Artis REIT (TSX: AX-U, OTC: ARESF)–To 6 from 5. Third-quarter results demonstrate the company’s recent spate of acquisitions is paying off with stable and rising cash flow.

Canfor Pulp Products Inc (TSX: CFX, OTC: CFPUF)–To 2 from 3. Future revenues look cloudy with volatility in the global pulp markets, and there’s no margin for error.

Capstone Infrastructure Corp (TSX: CSE, OTC: MCQPF)–To 2 from 4. Management pulled the rug out from under investors this month by sharply reducing guidance and warning of a dividend cut in 2012 of unknown proportions. That was just three weeks after an upbeat third-quarter conference call.

Cathedral Energy Services Ltd (TSX: CET, OTC: CETEF)–To 2 from 1. There’s no sign of a slowdown in the directional drilling business, and the company continues to roll up strong growth.

Chemtrade Logistics Income Fund (TSX: CHE-U, OTC: CGIFF)–To 4 from 3. Third-quarter results were the best ever, as plants performed well, market conditions remained robust and the company reaped the benefit of expansion.

Chorus Aviation Inc (TSX: CHR/B, OTC: CHRVF)–To 2 from 3. Air Canada’s (TSX: AC/A, OTC: AIDIF) latest proposal to change the company’s cost recovery would almost surely force a dividend cut.

CML Healthcare Inc (TSX: CLC, OTC: CMHIF)–To 4 from 3. The biggest threat to future earnings has been eliminated, mainly floundering US operations that have now been sold.

Cominar REIT (TSX: CUF-U, OTC: CMLEF)–To 4 from 3. Third-quarter revenue rose 12.9 percent, net operating income was up 12.7 percent and the company has no near-term debt maturities.

EnerCare Inc (TSX: ECI, OTC: CSUWF)–To 4 from 3. Robust third-quarter earnings and the 1.9 percent distribution boost announced last month provide a very real degree of future earnings visibility.

GMP Capital Inc (TSX: GMP, OTC: GMPXF)–To 3 from 4. The company continues to hold all of its vital market niches but has failed to earn its dividend for some time. Management has no intention to cut at this point, but until numbers turn up it will be a growing possibility.

Just Energy Group Inc (TSX: JE, OTC: JSTEF)–To 4 from 5. The payout ratio dropped to 91 percent and continues to improve. I’ve dropped the Safety Rating because of reduced earnings visibility due to weak natural gas prices making it more difficult to land new customers.

New Flyer Industries Inc (TSX: NFI, OTC: NFYEF)–To 1 from 2. Distributable cash flow actually turned negative during the third quarter.

Northern REIT (TSX: NPR-U, OTC: NPRUF)–To 6 from 5. The drop in the third-quarter payout ratio is a clear sign the company’s strategy is on track. That’s promising for distribution growth, despite the possibility the company will have to change structure pending a ruling by the Canadian government on split-share (part equity, part bond) structure.

Primaris REIT (TSX: PMZ-U, OTC: PMZFF)–To 4 from 3. The payout ratio dropped again in the third quarter on higher rents and occupancy, vindicating management’s growth plans and providing some transparency to future revenue.

Provident Energy Ltd (TSX: PVE-U, NYSE: PVX)–To 4 from 3. The company’s payout ratio came way down in the third quarter on a combination of asset expansion and strong demand for natural gas liquids, and both trends look set to run for a while.

More Information

How They Rate has automatically updated US dollar unit/share prices, dividend payment rates in US dollars, yields, most recent dividend dates, dividend frequency and debt-to-capital ratios. Note that our quote service sometimes includes special annual distributions along with the regular monthly payments. How They Rate also includes several free links. Clicking on the Toronto Stock Exchange (TSX) symbol will now take you directly to the Google Finance page for every company in the How They Rate coverage universe.

Clicking on the US symbol of a company takes you to a chronological listing of every Canadian Edge and CE Weekly article in which that trust has been featured. You can also use that page to access articles on other trusts by typing in the relevant exchange and symbol in the “Search Query” box at the top of the page.

For questions and comments, drop us a line at canadianedge@kci-com.com. Check out the Toronto Stock Exchange Web site for a range of information on dividend paying equities. The Web site www.sedar.com is an online library of documents filed by trusts with the Canadian equivalent of our Securities and Exchange Commission. The Toronto Globe & Mail features the “Globe Investor” section with all the latest news. Dominion Bond Rating Service is the pre-eminent credit rater in Canada. The Bank of Canada has a handy currency converter for Canadian dollars and US dollars into 50 other currencies around the world, and it’s a great source of free information on the Canadian economy.

How They Rate can now be accessed several places on the Home Page. The Income Trust Tax Guide has backup to file distributions as “qualified dividends.”

Roger Conrad
Editor, Canadian Edge