How to invest in Canadian Royalty Trusts and are what are they worth. I'm an American living in the states.
2007-01-28 06:28:50 · 3 answers · asked by garykofoid 2 in Business & Finance ➔ Investing
can I invest through scottrade
2007-01-28 08:32:29 · update #1
The situation is a little shaky right now..a finance minister wants to change the way they pay taxes...( but he's meeting a lot of opposition/ and it's four years off anyway)
But, here's the scoop... they are a very nice "dividend investment"..most give close to or above 10%-12%
The one I have chosen is PWE ( Penn West Energy) it pays the dividend monthly..so each month on the 15th, they send my account a set amount of money( whether the share price goes up or down, whether the price of oil goes up or down) You get 30 cents for every share you own every month...
If you haven't invested before, go to E-trade set up an account ( all on-line) and follow the instructions for investing.
If yoy want to look more into it try:
http://www.investorvillage.com
Put CANROYS in the symbol box and there will be any amount of suggestions from some knowledgeable investors.. they're a good bunch and patient with "newbies"
Best of luck'
P.S. Sooner or later oil/gas prices will rise again ( there's just soooo much demand).. and then your investment increases in value besides the divs.
2007-01-28 07:40:17 · answer #1 · answered by jebediabartlett 6 · 0⤊ 0⤋
Canadian Royalty Trusts are generally traded on Canadian stock exchanges though a handful are dual listed in the United States. They provide tax deferral benefits to Canadian citizens and pay large distributions which is why they have become extremely popular among U.S. citizens. Recent proposed changes in the tax laws in Canada have made them less popular, and the sustainability of their distributions can be in question.
The valuation question can only be tackled on a case-by-case basis. I would be careful because many of these vehicles were taking advantage of investor frenzy for yield.
2007-01-28 08:01:02 · answer #2 · answered by gls_merch 5 · 0⤊ 0⤋
Go with the first answer and also look at HTE, AAV, FDG, PGH in addition to PWE. Most experts do say only invest when the yield hits 14% or more, though.
If I had two picks, I would go PWE and AAV.
I am also American and am gonna add CONROYS in the coming weeks to my portfolio.
2007-01-28 09:18:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋