Chorus Aviation (TSX:CHR) is a Canadian holding company involved in regional aviation businesses. Shares were up 40% in 2019 as of mid-afternoon trading on June 20. The stock is up 5.6% from the prior year.
Chorus was a terrific addition for opportunistic investors in December 2018, but the stock still offers a nice monthly dividend for those on the hunt for income this summer.
In the first quarter Chorus secured a $300-million credit facility that should support its regional aircraft leasing segment going forward. It boosted its Regional Aircraft Leasing fleet to 45 in Q1 2019.
Operating income was mostly flat year-over-year at Chorus. Adjusted net income fell 28.6% year-over-year to $19 million or $0.13 per share due to a dip in adjusted EBITDA, increase in interest costs, and an increase in depreciation related to additional aircraft in the regional aircraft leasing segment.
Chorus has worked to build its global scale and it looks well-positioned for growth as we look ahead to the 2020s.
On June 19 Chorus announced a monthly dividend of $0.04 per share. This represents an attractive 6% yield as of this writing. Chorus currently boasts a P/E TTM of 12 which is a nice price level in comparison to industry peers even after its solid run up in the first half of 2019.
However, value investors may want to wait for a more friendly entry point as the stock does have an RSI of 72, which suggests that Chorus is technically oversold right now.
