wobatus

High-Yield Canadian Royalty Trusts vs. Dividend Growth Stocks

I don't think you read through. :)

The question is sustainability of the yield. The factors include:

1) energy prices
2) the reserves of the canroys (some replenish more or deplete faster than others)
30 currency
4) corporate structure and canadian tax law (did you pay attention to the mention about the change in tax law).

You cannot look at, say, JNJ's yield, which has increased every year for 46 years, and compare it to a canroys that may (will) fluctuate.

Not to say the canroys or particular ones are not good deals. Depends on the price.


On Apr 30 10:32 AM grbn wrote:

> so avoid the CanRoys at 15% and stick with McDonald's at 3.5%?? Seem
> like a long way around just to say "diversify".

High-Yield Canadian Royalty Trusts vs. Dividend Growth Stocks

Bruno T., chill, he just says don't put all of your eggs in that basket. I have some ERF and have taken a hell of a beating, but i also own mcd, mmm, pg, pfe (which unfortunately cut), hnz, bmy, dvy, wmt, intc, msft, gs, gfig, nm, plus some other income producing sources, mtp, hio, ncz, avk, bny...along with some non-dividend stocks.

Balance. i don't plan on selling my erf, and may add some other canadian trusts, although i'd like to see what the new corporate forms will be, how the law plays out, etc.

You may a good buy of pwe at a trough. Good for you. I think the author is talking more about someone looking for retirment income long term.