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Claymore/SWM Canadian Energy Income Message Board

  • stas_lopushansky stas_lopushansky Jun 12, 2009 1:18 AM Flag

    Dividend Yield Too Low?

    According to ETFConnect.com, this ETF is yielding less than 5% as of June 11. Many of its holdings yield 7% or more with Penn West in double-digits (Google Finance). The official website of ENY claims the exchange ratio is capped at 0.65%. So how can the yield be so low? Is it because the fund hasn't been around for a very long time and there's data missing?

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    • Have you taken the time to look at the yields of the individual holdings? The top ten issues make up almost 65% of the portfolio. One four of those are trusts. COS yields less than 4% and Baytex is less than 6%. Enerplus pays about 8.5% and Penn West a little more than 10%. Of the non-trusts in the top ten, the yields of Suncor, CNQ and Imperial are microscopic and seem to be mostly symbolic rather than economically meaningful. Three of the top ten holdings don't pay any dividend at all. So, when you ask the question, "how can the yield be so low?", the answer is - because it's the weighted average of the fund's holdings.

    • If you buy the Canadian stocks, you get 15% witheld
      by Canada on income, but get it back on IRS day via
      Form 1116 or Sch D.

      I do not know how they do that here.

      And all income trusts turn to pumpkins 12.31.10 and
      some are adjusting now.

      I would not buy, but study the stocks in Canada.

      Even then, with tax law change...........

 
ENY
17.20+0.04(+0.23%)Aug 29 4:00 PMEDT

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