silverwood

Pengrowth Energy, Gold Miners ETF: Value in Commodities

I have to give the author thumbs up for his choice of PGH. As other posters have indicated they have hedged a portion of future production and have cut the dividend by 25%. I hated to see my monthly distribution drop but I have to agree this was a wise discision in these current market conditions. Because they wil remain a Trust until Jan. 2011 they will be required to distribute most of their profits to unitholders. So if we do see marked improvements in the price of oil/nat gas in 2009, then quite possibly we would get an increase in distibution rate. At the same time captial appreciation in the share price. I believe the world wide goverment stimulus plans will increase demand for energy, especially the renewed drive for infrastructure improvements.