tk77mann

Choosing Dividend Stocks Wisely

Most of the CanRoys I follow have an active exploration and drilling program, in addition to M&A asset expansion. Penn West (PWE) had a 50% increase in their barrel of oil equivalent (BOE) in the nine months ending 9/30/08. In the third quarter of 2008 they drilled 98 wells with a 98% success rate. (See finance.yahoo.com/news... )

CanRoys expose investors to the price swings in the oil market, but given the world's use of oil in the short term, I still think CanRRoys are a useful asset to own. And priced pretty cheaply now, too.

Choosing Dividend Stocks Wisely

Investing in CanRoys gives some protection against inflation as well as short term high dividend yields.

The governments of the world are rapidly pumping lots of money into the economy to minimize further economic damage, but they are priming the pump for some serious inflation to come. CanRoys, since they are almost pure asset plays, will likely have inflated incomes and higher dividends resulting from the inflation years (decades?) to come.

I think CanRoys and dividend growth stocks are both part of a reasonably balanced dividend portfolio.