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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Goldberry who wrote (3080)	3/28/2002 10:37:05 AM
From: David Culver	Respond to of 11633

I think the key is to be selective I bought Sun Gro but have passed on most of the others. This board can provide a useful discussion on the IPO and if they should be bought

To: Goldberry who wrote (3080)	3/28/2002 10:42:53 AM
From: trustmanic	Respond to of 11633

My policy is: To assess the company's business and its financial. To buy trust is no different than any common stock. The only different is more income. This is good for babyboomer. These group of folks needed stable income to pay for all the expenses. Of course, we will find some bad trust in the future and people will panic. This is why this thread is so important.

To: Goldberry who wrote (3080)	3/31/2002 8:51:05 AM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

Wondering if anyone has tried to play the dividend stripping game on the royalty trusts. The idea is to buy a trust at some point ahead of the x-dividend date, collect the dividend, wait for the trust to move up again, and than sell. You can than use your money for something else (like moving back into a trust that pays monthly). It obviously works best for the trusts that pay on a quarterly basis, because otherwise you're paying too much out in commissions to justify the effort. With a good solid established trust, and a market that seems to be in love with these things right now, there appears to be very little downside. I just worked dividend strips for both SPF.UN and SMN.UN. In the case of SPF I bought for an average 18.08, and sold for 17.98. With a dividend of .70 and trading commissions of .06, that's a .54 gain for a hold of a couple of weeks. With SMN I bought at 10.65 and sold at 10.85. With a dividend of .25 and trading commissions of .06, that's a dividend strip of .39. Obviously a lot of people do this which is one of the reasons why you see a dramatic drop in the price of the quarterly payors right on the x-dividend date. The key, it seems to me, is to not sell immediately on the x-dividend date, but to wait for a week to 10 days for the stock to move back. For anyone interested, the quarterly payors are as follows: Oil and gas: COS, SHN Reits: LGY, MRT Commodities: WTE, LIF, TWF, TAY, RSI, SPF Pipelines: KPC, FCE Power: TPL, APF, GLH Operating Businesses: FZR, HAL, NWF, ACF, SMN, Trust of Trusts: MID Others: PRT May be others I missed. Most of them pay on a March/June/Sep/Dec x-dividend schedule. However COS, TAY, and NWF (and maybe some others) are on a different schedule. I know dividend stripping is a well-established practice with certain blue-chip dividend paying stocks, and with certain preferred shares. I find it interesting that it hasn't been discussed on this board. Interesting as a side-note that all of the new trusts coming out are monthly payors. Obviously people looking for a monthly income stream are one of the target markets for these IPO's.