BrunoT

High-Yield Canadian Royalty Trusts vs. Dividend Growth Stocks

For god's sake someone edit this columns to elminate the ones by those who know little more than the guys around the coffee machine at work.

Even after severe drops in dividends after oil prices crashed late last year (not because unit/stock prices dropped, that is not a factor in dividends) a 10-20% dividend is still light years ahead of anything else. And when oil rises back (it's already way up from the lows earlier this year) the dividends will rise again.

Do you seriously think that during a major depression that may last years your stocks will have real inflation adjusted gains equal to that? Insanity.

You also failed to mention that when the dollar drops in value soon and the canadian dollar doesn't, those dividends will get a multiplier effect from the currency exchange that could add significantly. Or that when US oil stocks get hammered with "excess profit" taxes by a democrat congress as oil prices rise, Canadian ones may not.

And finally, the unit price of these canroys is 1/3 what it was less than a year ago, and dividends have already been adjusted to the lower price of oil. Even if oil halved again they could STILL pay out more than the stocks you listed above. But what if oil returns to even $120/bbl? They double in unit price AND dividends are raised.

I have some PWE purchased that yields me almost 30%. And the unit price is up over 50% since I bought it a few months ago. So stick that in your pipe and smoke it, "expert".



How hard is that simple concept to understand?

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge?

The name "notagoldbug" tells me that they're not the clueless ones. The gold bugs seem to have done quite well for themselves in the last 8 years.


On Mar 26 08:42 AM notagoldbug wrote:

> you guys are clueless...canadian oil/gas trusts are to convert to
> corp by 2011 so just buy oil/gas stocks......NOW.......... trusts
> are leveraged and cuting their distributions .. yields are a false
> way to evaluate the investment merits....stay informed

High-Yield Canadian Royalty Trusts: What's the Catch?

I think there may also be a positive currency exchange benefit for US owners if the dollar drops against the Canadian dollar, which I believe it has done in recent years.