trust downside? everything has downside. i believe HTE has already hedged around 60% of 2007 production, but check their presentation on their website. their cash flow per share was CAN$1.30 in Q3, while dividends per share were CAN$1.04. so there is room to maintain dividends. it is reassuring that they recently announced the dividend and left it unchanged. two trusts that recently lower their dividends are CNE and AAV. Their stock did not seem to take a hit. so maybe that tells us of limited downside.
i think the upside is large. not only would we get increased dividends, but stock appreciation. to spread your risk out, maybe you should buy an assortment of the high dividend trusts. PWI 14%, CNE 15%, PGH 15%, HTE 18%, DAY-TO 24%, AAV 14%. But maybe the diversification is a delusion. They all have presentations worth reading on their websites. I own these, but others have been mentioned here also:
finance.yahoo.com
good luck,
grommit |
