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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (3516)	1/27/2010 8:33:22 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Hi Dabum3 - I own PWE ERF and PVX all Canadian Trusts that generate good dividend streams. finance.yahoo.com My main purpose in owning these companies was based on their underlining assets (Oil & NG). Each company has a good history of building their "proven" reserves over the long term. I feel quite comfortable owning these companies and expect to receive a lot of income over time. These assets will increase as inflation kicks up, continued deficit spending by the U.S. impacts the value of the U.S. dollar and as natural resources become scarce. These oil and NG reserves "in the ground" is my insurance policy I will maintain my purchasing power even if the U.S. $ debases. My strategy is to periodically harvest my losses by selling my higher priced shares and buy a similar amount of shares in my other Canadian Trust holdings. This way I can work on establishing a lower average share cost w/o sacrificing on monthly income. For example I have a NET loss on ERF since I own a lot of higher priced shares but my PWE shares reflect a net gain. I will be buying more ERF once I complete harvesting losses and waiting 31 days as long term ERF has made some significant investments (over $200 million) in the last 18 months in Balkin shale properties. The NG wells that they eventually tap on average produce for over 30 years producing a steady revenue stream for unit holders. Managements has continued to invest for the future building up their proven reserve inventory. To me these assets under the ground in several ways are better than cash in the bank. It does provide a good hedge to the portfolio that T-Bills or CD's can not. That is the debasing of the $U.S. dollar and/or high inflation. EKS