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  • ltbhdollars ltbhdollars Feb 20, 2004 4:32 PM Flag

    Investing For Income - Opinions Request

    The good stocks are very expensive right now....the junk is very expensive right now. Is the friend lookin for income and able to live with lower stock prices?? Is this a taxable account or tax deferred?? Two important considerations you have not mentioned.

    However, if the account is taxable: ACNJF/ae.un 100% ROC 2004; UETUF/UET.UN ~60% ROC 2003; PMGYF/PMT.un maybe ~50 ROC 2003; EVDVF/EIT.un maybe ~60% ROC 2003.

    If non taxable, then substitute APFRF/AY.un and AVNNF/avn.un for ACNJF nad UETUF.

    Now the lower yield anchor side of things: IMH ~10.7%; O ~5.6%; EPR ~5.5%; HE ~4.7%; UST ~5.3%; MLS ~4.7%; and PCL 4.6% (PCL mostly cap gains some ROC so effective % is really higher).

    Again...ALL stocks are expensive right now, however some planning with the above should allow a total portfolio return (after Canadian but before US tax) in the neighborhood of 11%.

    BTW take the reco's on HE and UST seriously... check their divie history ...bout 100 years payin them...not many can say that!


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    • Thanks ltbhdollars, and this account is being set up as a IRA rollover that currently is invested in the S&P 500 index.

      Best Regards,

      Cool Hand

      • 1 Reply to cool_hand_2
      • BTW, the percentages were approx current divie %. For how you might chose to split groups: 25% the O&Gs; 25% EVDVF/EIT.un; and 50% among the stogy low payers.

        Also folio payout percentages may be slightly below 11% since Paramount PMGYF/PMT.un just lowered divie. But still strongly recommend Paramount and its price is up ~4% since announcement yesterday (decrease was anticipated and due to gov situtation NOT poor management.

        In fact IMHO Paramount management has proven to me under extreme duress that they are one of the finest available. (and my money is where my mouth is as I continue to add it to both IRAs and taxable account).

        One last word, check the boards for info on various brokers, there are several who continue to NOT register IRAs/Roths with the transfer/holding agent and consequently 15% is INCORRECTLY witheld from all Canadian distributions to these tax advantaged accounts.

        I use Ameritrade and they get it right....ask around for other choices as once its witheld from IRA you cannot get it back.


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