ericinNE

Permian Basin Royalty Trust: The Cramer Effect

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Permian Basin Royalty Trust: The Cramer Effect

CanRoy's in general: Better return than US MLP's. Tax issues are a non-issue, most have big tax loss carryovers that will carry them out to 2014/15. IRA or non-IRA hold is a wash. The 15% foriegn tax gets kicked back at tax time as a credit, but you still have to pay the US dividend tax in a non IRA account. You don't get the US tax credit in an IRA account, but don't pay any US tax on the dividends. Either way, same/same. If Obama jacks the cap gains rate, the Canadian tax could actually end up being a bargain, until they jack the rate in 2011 (supposedly; that could change, yet.) The exchange rate will kick the return up some when the dollar finally gets around to devalueing
HTE: What a great return at last price! 58% annual on $4.97 a share. No way that can last, but still! HTE's problem is their debt, a good lick over industry average. Might bite'em, might not. The split the difference play is PWE. Way more likely to be able to sustain and increase their dividend after their most recent cut ($.23 from $.34 C.) 25% annual yield on $8.83/share, beat down price like all the others.
(Prices/yields per Yahoo Finance close of Friday.)
Long PW