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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (6749)5/24/2006 8:51:57 PM
From: RJA_  Respond to of 217820
 
>>What I read before was that the yield looks high on the income trusts because they are non-renewable resources...

Take a look at Arc's web site. They started out about 10 - 13 yrs ago (approx) with approx 10 years of proven + probable reserves. Its now 10 - 13 yrs later, the reserves are approx 10 - 12 years now. Actually have increased.

What you want is a trust that can build reserves while keeping up dividend payments. Its not easy to do, I think...

I look at reserve life, track record of building reserve life (or at least not loosing it) and dividend payout. I look for 10% if I can get it (before canadian 15% tax on dividend)... also its nice if its stable or increasing.

If all 3 are there, should = VALUE.