{"id":350826,"date":"2010-02-22T10:40:00","date_gmt":"2010-02-22T15:40:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:398983"},"modified":"2010-02-22T10:40:00","modified_gmt":"2010-02-22T15:40:00","slug":"canfor-pulp-yield-expected-to-rise","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/350826","title":{"rendered":"Canfor Pulp yield expected to rise"},"content":{"rendered":"<p><a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=CFX.UN&amp;id=15176416\" >Canfor Pulp Fund&#39;s<\/a> current yield of 14.8% looks safe after pulp producers raised prices on northern bleach software kraft (NBSK) pulp. Even better, the company&#39;s distributable cash is only going to get bigger, says Daryl Swetlishoff, Raymond James analyst. <\/p>\n<p>&quot;Given current pulp markets we not only view [the current] distribution level as sustainable but see upside,&quot; he said in a note to clients.<\/p>\n<p>Canfor Pulp&#39;s current yield of 12\u00a2 per month or $1.44 per year represents a 66% payout ratio based on a NBSK price of US$850 per metric tonne and a loonie at US95\u00a2.<\/p>\n<p>Mr. Swetlishoff said Canfor has historically paid out at a 90% ratio, implying a 20% yield or $2.17 per year dividend. But he estimated that the distribution could go even higher. <\/p>\n<p>&quot;Canfor maintains high leverage to NBSK pricing and we highlight that at current spot pulp [of US$880 &#8211; US$910\/mt] and FX rates our model forecasts Canfor generating $2.75 &#8211; $3.29 in annual distributable cash implying 28% &#8211; 34% annualized yields,&quot; he said. <\/p>\n<p>The analyst raised his rating on Canfor Pulp to Strong Buy from Outperform and increased his price target to $12.50 from $11.50 per share. <\/p>\n<p><a href=\"mailto:dpett@nationalpost.com%20\">David Pett<\/a><br \/>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=398983\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canfor Pulp Fund&#39;s current yield of 14.8% looks safe after pulp producers raised prices on northern bleach software kraft (NBSK) pulp. Even better, the company&#39;s distributable cash is only going to get bigger, says Daryl Swetlishoff, Raymond James analyst. &quot;Given current pulp markets we not only view [the current] distribution level as sustainable but see [&hellip;]<\/p>\n","protected":false},"author":4060,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-350826","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/350826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4060"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=350826"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/350826\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=350826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=350826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=350826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}