On April 30th, I made a purchase of Chorus Aviation Inc. in my margin account. This company was formed in 2010, when Jazz Air Income Fund changed its corporate structure for a income fund to a corporation. On October 31, 2006, the federal finance minister announced changes to the income trust model. This change meant that income trust will be taxed different from what they were currently taxed on. The income trusts in Canada had to 2011 to change to a corporation or keep their current setup with higher taxes.
Chorus Aviation Inc. is a holding company that owns Jazz Aviation LP. Jazz Aviation LP has a history going back to the 1930's. This company has a purchase agreement with Air Canada, which is Canada's major carrier. Jazz Aviation LP provides service to smaller markets and routes on a daily basis on behalf of Air Canada. Jazz Aviation LP also provides services to major markets in off peak times.
I purchased 1000 shares (CHR.B) at $3.68 on the Toronto Stock Exchange for a total cost o 3689.95 including commissions. The current annual dividend rate is $0.45/ share. The yield on this investment is 12.2% providing an annual dividend income of $450.00.
"Chorus Aviation Inc. ("Chorus") (TSX: CHR.B CHR.A CHR.DB) today announced that the Toronto Stock Exchange (the "TSX") has accepted its notice to make a normal course issuer bid ("NCIB")
to purchase for cancellation up to a maximum of 12,168,157 of its Class
A Variable Voting shares and/or Class B Voting shares (collectively,
the "Shares"), representing 10% of the public float of the Shares." -Yahoo Finance, Mar 27, 2014
As you read above, Chorus Aviation Inc. is planning on buying back 10% of its shares.
I will update my portfolio in a couple of days, since it is the start of a new month.
Disclosure: this might not be a long term hold.