Chorus Aviation Inc (CHR.TO)

(Market Call Minute.) A really stable dividend. For someone looking for a 7% dividend, this is an area where you can put some money. They have a contract out to 2020 with Air Canada (AC-T), so there is not a lot of risk to cash flow.

He looked at it a while back. The contract with AC-T has been extended so it is more viable than it was. The dividend is safe.

Deep value. A couple of years ago this was representing great value. Many investors didn’t like it because they were worried about the contract with Air Canada (AC-T). That has been extended out to 2020 on favourable terms for both parties. This gives you a very, very stable dividend going forward. You won’t get any growth, so it is a good holding for someone looking for a dividend tax credit and a good sizable dividend. Dividend yield of 8%.

A feeder for Air Canada (AC-T) without the typical sensitivity to fuel costs, traffic, currency, etc. Have traditionally been good operators. Their contract with Air Canada has been extended to 2020. Scores really well on valuation. Trading at 5.4X EBITDA. Dividend yield of 8.73%.

Not a big fan of airlines. This one is unique because they are focused on return of capital to shareholders. Always a decent dividend that is always sustainable. This is a great way if you are ok with small cap. A decent way to get income. Investors have earned a tremendous amount from the dividend. The business always spins off a tremendous amount of free cash flow.

Chart shows higher highs and higher lows since 2013. Had a nice break out early this year with a parabolic move. You definitely could see a small pullback, but he wouldn’t worry about it too much.

He is looking at it. The dividend is sustainable. It operates planes on behalf of Air Canada. It passes through costs to Air Canada so you don’t have to worry about operating costs. The balance sheet is in good shape and valuation is reasonable.

Suspects we could rally up to $6. It was a double bottom. There is some really good potential in this bottoming here. In the short term it is probably overbought a little here. Looks like it is in accumulation mode. If oil prices start to rise later in the year, it will put pressure on the airline stocks.

He really likes this. They run Jazz airlines for Air Canada (A-T). Had a huge jump yesterday and a further one today on news of 2 long-term agreements. One was with their pilots and the other was with Air Canada. They now have a long-term agreement. He could see this getting to $5.50. The dividend is safe.

Operate the regional jets for Air Canada (AC.B-T). The agreement with Air Canada is coming up for renewal in 2017. Air Canada is trying to reduce the cost of some of its regional programs, so he thinks this is a risk for this company. We went through this same thing 3-4 years ago, and they still managed to operate fine, although they had to reduce their dividend. In the meantime, this is a very good cash flow generator. As an income investor, you are getting the majority of your return from income here, very little capital appreciation. If this is what you want, this is not a bad place to be.

Everything corrected in 2011, so we forgive it for that. We have this resistance since then at $4 and we broke out above it. It could be in an inverse head and shoulders. It should come back to test it, which it is. It could probably be a buy in here.

He owns it for the yield. Generating significant cash flow. A risk is how they are trying to diversify. You might buy it right after the ex-dividend date because it drops more than the dividend. They are paying out less than their earnings.

(A Top Pick March 21/13. Up 4.86%.) He likes the 12% return which he thinks is safe. Earnings are coming out tomorrow. Have a good business. Won their arbitration with Air Canada (AC.B-T). A story that is not well understood. Has a bit of confusion to it. Have a lot of cash on board and they could do an acquisition. Have at least 3 or 4 more good years ahead of it.

If you are invested in this for yield, he would have a tendency to go for a more blue-chip type situation. It’s in the airlines business so it is very volatile.

(A Top Pick March 21/13. Up 9.45%.) Paying a dividend of over 11% which he thinks is sustainable. A terrific yield stock. Also, thinks there is some potential growth here. Have a lot of cash on board and they are profitable. Thinks they may do an acquisition to build out the company or pay a special dividend.