Best Investments for Rising Oil? High Dividend Energy Stocks [View article]
Cliff,
While I am a big fan of most pipeline MLPs, they won't necessarily earn higher profits if prices of oil and gas increase. They earn their money from transporting oil and gas. Very few of them have any exploration and production per se.
I do however like the stability in their distributions, as well as the distribution growth potential in some of the largest pipelines.
The S&P 500 is consolidating between 929 and 875. A decisive move above/below these levels would be bullish/bearish. I wouldn't call the rising move from 680 to 930 a "range" however.
Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2) [View article]
Cliff,
You seem to be a big believer in Canadian Income Trusts. I do not like the 2011 Tax Change, which could lead to distributions taxed very unfavorably for US investors. I also do not like the volatility in Canadian Trust distributions. It's true that some of them spot double digit yields, but if distributions are cut the yield on cost end up less than a CD.. I feel much more comfortable buying the solid energy plays such as CVX, XOM and BP which are dividend achievers and have a proven track record of raising dividends and buybacks. They offer more solid and dependable dividend income stream in addition to the dividend growth potential and preferential tax treatment on their dividends.
Best Investments for Rising Oil? High Dividend Energy Stocks [View article]
While I am a big fan of most pipeline MLPs, they won't necessarily earn higher profits if prices of oil and gas increase. They earn their money from transporting oil and gas. Very few of them have any exploration and production per se.
I do however like the stability in their distributions, as well as the distribution growth potential in some of the largest pipelines.
Best Regards,
Dividend Growth Investor
Commodities for Income Investors [View article]
Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge? (Part 2) [View article]
You seem to be a big believer in Canadian Income Trusts. I do not like the 2011 Tax Change, which could lead to distributions taxed very unfavorably for US investors.
I also do not like the volatility in Canadian Trust distributions. It's true that some of them spot double digit yields, but if distributions are cut the yield on cost end up less than a CD..
I feel much more comfortable buying the solid energy plays such as CVX, XOM and BP which are dividend achievers and have a proven track record of raising dividends and buybacks. They offer more solid and dependable dividend income stream in addition to the dividend growth potential and preferential tax treatment on their dividends.