There are 4 main reasons for buying FDG in my opinion: 1. Coal is a raw material in high demand and this Canadian trust has plenty of it. 2. Canadian law gives energy trust a nice tax break. As an REIT the company passes this benefit on to investors. 3. The Canadian dollar is stronger than the US currency so this position will also shelter against the state the dollar is in. 4. annual dividend of 11%
Coal and Steel Stocks Take A Hit [View article]
1. Coal is a raw material in high demand and this Canadian trust has plenty of it.
2. Canadian law gives energy trust a nice tax break. As an REIT the company passes this benefit on to investors.
3. The Canadian dollar is stronger than the US currency so this position will also shelter against the state the dollar is in.
4. annual dividend of 11%