The Globe and Mail reports in its Friday, Feb. 8, edition that Chemtrade Logistics Income Fund ($11.42) is one of National Bank's top-yielding stock picks for 2019. The Globe's Jennifer Dowty writes that Toronto-based Chemtrade is a leading North America's supplier of industrial chemicals. Chemtrade pays its unitholders a monthly distribution of 10 cents per unit, $1.20 per unit yearly, working out to an annualized yield of over 10 per cent. The unit price collapsed in the fourth quarter from the mid-teens to its present level of over $11. National analyst Endri Leno believes the unit price will recover. He has a share target price of $16.50. Looking at the stock's valuation, Mr. Leno notes that the stock is cheap, trading at discount to its peers and relative to its historical levels. He notes Chemtrade is trading at "trough levels" on a forward EV/EBITDA basis (enterprise value-to-earnings before interest, taxes, depreciation and amortization). Based on Mr. Leno's forecasts, the 2019 payout ratio is expected to come in at 62 per cent. The Globe reported on Jan. 11 that CIBC analyst Jacob Bout had lowered his rating for Chemtrade Logistics to "neutral" from "outperformer." The units could then be had for $10.43.
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