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Roger Conrad, for 20 years our nation's leading income advisor, tells you how to get up to 21.8 % yields right now with safe, select Canadian trusts. Plus, many of Roger's readers have banked up to 40% cash premiums from merger windfalls, and we hear reports about more trust takeovers with windfall potential. Roger's broker guide tells you how to buy Canadian trusts here in the U.S.; some with no minimum investment. Please read Roger's piece and see how you can still build solid wealth in today's climate ... Thanks, Walter Pearce, KCI President
With 20% Yields, Retire When YOU Want To
by Roger Conrad, Editor, Canadian Edge
Dear Investor:
If you're closing in on retirement and need to grow your money, stashing it under the mattress is not an option.
Fortunately, if you need to pump some serious cash into your retirement fund, you do have another option: You can get up to 17-20% yields right now from steady, cash-rich businesses.
This is a solid, stable investment that sends you monthly checks. And I will give you the names of brokers who require NO minimum investment. So if you want to "try and see", you can easily make a modest initial investment -- and gauge the cash you'll be getting from your monthly checks.
I'm talking about safe, dependable, Canadian trusts -- probably the best income generator on the planet.
Canada's banking system is rated # ONE in the world. Canadian banks and corporations run a tight ship and they've never had a subprime scenario.
And the best news is this: right now, you can snap up these rock-solid businesses at bargain rates.
So, you grab high yields and monthly cash right away -- and the great entry point gives you growth and all the profits that go with it.
I should mention the other great news. With so few cash-rich businesses out there, Canadian trusts are a prime takeover target. The last takeover gave my readers a huge, 40% cash premium. I've just caught wind of two other potential takeover bids with windfall potential and, of course, I'll share all this with you.
There's no one typical Canadian trust -- but what the best trusts all give you is their generous, predictable, payouts.
The World's Highest Dividends Are Not on Mount Everest
They're right next door in investor-friendly Canada. On the big Toronto Stock Exchange or the NYSE or American exchanges. You will get 14-20% a year or more in very regular monthly checks. Doesn't that sound better than watching your U.S. stocks going up and down like a roller coaster?
I'm not exaggerating in the least. You can scour the planet for higher yields, and about all you'll find is junk: troubled corporate bonds from troubled companies that may fold and leave you with nothing. You'll also find bonds from some hard-pressed nations -- Myanmar, Paraguay, Chad --desperate for cash at any price.
Think: There's a reason these troubled countries and companies have to offer helium-filled dividend rates. Nobody in his right mind would buy them otherwise.
Canadian Edge presents only the most sound trusts, based on healthy, operative, growing companies. I've vetted these corporations and reviewed them continually for many months and years.
My scorched-earth vetting process completely eliminates most trusts. But happily, it does leave 30 that are currently yielding more than 10% . . . and 20 that are yielding more than 15%. These are the world's highest real dividends, and they're all featured in each monthly Internet issue of Canadian Edge.
Monthly Paychecks? With a 10% Annual Raise?
Speaking of monthly, that's how often you'll get a dividend check from virtually all of my trusts. Monthly is much nicer than yearly, especially if you're using CanTrusts as your major income source, a practice that you'll find highly reliable. When you can regularly put almost 15% of your CanTrust nest egg into the bank over a 12-month span, you sleep better.
But that 15% is probably not your ceiling. It's more apt to be the floor. Out of my favorite 30 CanTrusts, 25 of them have increased dividends at least once over the last year, with the average increase being nearly 10%.
Hard to believe, but yes, you're dealing with a whole different mindset up there in Canada. Those Canucks actually pride themselves on upping your monthly paycheck. Very heartwarming, to say the least--especially if you're used to the stingy yields of 2% or so that our own corporations grudgingly send you once a year. (I consider myself a loyal, 100% patriotic American, but hey, there are limits to my patience when it comes to growing my bank account.)
Canadian trusts are trustable, and they can mellow out your whole lifestyle.
Triple Your Profits, Quintuple Your Safety
Over the past four years -- I'm talking an average, here -- the Dow and the S&P gave about the same total return: 22%.
Over that same time, our solid Canadian trusts have given off three times that much: 68.8%.
That's 15.7% per average year for us . . . versus about 5% for the stock markets, even during their better days.
But the best part is your safety: Two-thirds of your profits will come from promised, reliable dividend yields five times as much as stocks could possible give you, even under the best of circumstances.
If you had been with us since our start in 2004, you would have received, as an average subscriber, 68.8% in profit on your money. That's not to be sneezed at.
But if you had wasted those four years, hoping that your Dow or S&P 500 stocks would get legs, you would only have received 22%. One-third as much.
Now let's think ahead. If the next four years are just like the last four, here's what your nest egg will add up to:
A. If you go with U.S. stocks, the $100,000 you had in 2004 will become $147,745 by 2012.
B. If you go with our select Canadian trusts, your $100,000 will become $321,120.
That's more than four times as much profit. Do I have your attention yet?
In the words of a TV adman: "But wait. There's more."
Let's take a closer look at the numbers I'm giving you. As you can see, our Canadian Edge profit numbers are substantial. But that's only half the story. Let's ask, "How safe and solid are these numbers?"
This is where CanTrusts really shine. Out of the 15.7% total return our average subscriber has been receiving per year, about two-thirds of that (10%) comes from regular, dependable dividends. The rest comes from the fact that share prices are going up, up, and up.
Compare that 10% average yield to Wall Street's yield on its good days, which is about 2%. One-fifth as much. That means that over half your expected profit would depend on stock prices moving up. But if you've walked within ten feet of a newsstand lately, you know that's an open question.
In other words, five times more of your CanTrust profits will flow from reliable dividends, not hoped-for jumps in stock prices.
And again, as I've said, those 10% yields are very likely to be raised by about 10% within the next year or so. As a matter of fact, you don't have to wait. You can simply start your CanTrust portfolio with some of those 12 trusts that already yield dividends of more than 14%.
So I feel safe in repeating: Over the next 12 months, Canadian Edge will enable you to more than triple your Wall Street profits while beefing up the likelihood of those profits by 500%.
Enjoy the Canadian Housing Shortage: Make 68% (Safe) Profits
Canada is one inch north of the U.S. in distance, but a thousand miles north in real estate prices.
The housing glut in America ends at the border. In places like Edmonton (Go, Oilers!), you'll be hard-pressed to find a nice, affordable house to rent or buy. Alberta rents are climbing monthly. Drilling is going on nonstop because oil and gas trusts know that tomorrow will come, and energy prices will soon be scary as ever.
From the Yukon to Newfoundland, our Real Estate Investment Trusts (REITs) are bringing our readers profits that are now averaging about 68%. Average. I think that's astounding. You walk around up there, and you eventually begin saying to yourself, "Toto, I've a feeling we're not in Kansas anymore".
The U.S. of A. has to be history's largest collection of people who want to be living somewhere else. Our housing bubble burst like a 3,000-mile-long string of firecrackers.
But Canada never had a housing bubble. Their banks' practices were and are different from ours, with hardly a stain of subprime lending. That's why we have endless tracts of nicely painted lumber gathering dust and they don't.
Three More Advantages of Canadian REITs
A. Trading in Canadian REITs is domonated by individual investors -- sane, sensible human beings.
In Canada, even the largest REITs change hands only on the Toronto exchange, while on the NYSE, even the smallest U.S. REIT is listed. Thus U.S. REITs were subjected to the kind of Wall Street mob attack that pushed them to dizzy heights while gutting their yields.
Owning part of a Canadian REIT is a personal thing. It's as close as you can get to true individual ownership without having to fix leaky faucets.
B. Your profits are based heavily on pre-set yields, not just growth in share prices.
Canadian REITs yield up to four times what our REITs do. That makes your profits much more reliable and free from real estate price swings.
C. No taxes. Not now, not ever.
Happily, REITs are in a category of CanTrusts that is forever exempt from corporate taxation. Also, the Canadian government, bless their hearts, recently saw fit to rescind restrictions on how many properties a CanTrust can own outside the country. That means if you want to buy the Sears Tower . . . or the house next door . . . or any piece of U.S. real estate, you can now do it more cheaply through Canada than through a U.S. REIT! We live in a strange world.
U.S. real estate is in limbo, but Canada's is still booming. That's why our Real Estate Investment Trusts have been bringing in moose-size total returns of 68%, including risk-free yields four times higher than ours.
There's a housing shortage up north, especially in Edmonton's oil sands region. Rents are climbing nonstop. Drilling is almost in a frenzy because energy industry leaders know that prices will inevitably surge again.
Oil Wells For Sale: $30 in Canada, Below Book
Canadian trusts originally got their hot reputation because most of them are based on oil and gas with big dividends. The energy boom attracted thousands of investors. But recently, with oil and gas prices taking a breather, some of them have come on the market at rock-bottom rates. In some cases, they're selling for less than the value of the proven assets they have in the ground. Oil at discount -- $30.
The Cheapest Place to Buy U.S. Oil Wells: in Canada!
Owing to the quirks of tax laws, you can buy U.S. oil and gas wells with less tax through Canadian REITs than through your brother-in-law in Texas. And Canadian REITs will never be subject to their taxation.
Overall, CanTrusts are more stable than U.S. stocks but a tad more volatile than U.S. utilities (which isn't saying much)!
Yet now and then, they can provide you with some rare opportunities. At one end of the spectrum, you have electric power generating trusts, which are steady to the point of boredom. (The perfect fit for retirees.) At the other extreme, you have oil and gas trusts, which can be as exciting as, well, oil prices.
And both oil and gas trusts are still yielding 16%, 18% even 20% and more. This is despite the fact that oil and gas prices are taking a brief vacation in the south.
But here's the corker: Some of them have dipped down to rock-bottom rates and they can be snapped up for less than their fire-sale, break-up value. In fact, you can buy some trusts for the same price now as when oil was at $20 a barrel. It's a near certainty that OPEC will squelch their production, so we know where oil prices are headed. If you want a more recent example, early in 2008, when oil was $90 a barrel, Enerplus Resources Trust (NYSE: ERF) was valued at $45 for each barrel of oil equivalent it owned. And of course Enerplus sold this $45 oil at $100 or $140 later.
It's fun to realize that you just became the part owner of a flock of oil wells for $30 or even $20 a barrel, and these statistical quirks are available to you right now.
More Fun
Related to this oddity is the fact that trusts, by Canadian law, must return all their profits to you (minus a very modest amount for growth and development) so typically, believe it or not, they give you roughly 80% to 85% of the profits.
However, owing to statistical and accounting quirks, they sometimes send you more than 85% of their month's profit. I won't bore you with the process behind that, but it works. It's like being in the movie Groundhog Day, except that you keep waking up in the morning to find that it's Christmas all over again.
Important side note: The likely conversion of many CanTrusts to ordinary corporations by 2011 has sparked a fascinating array of responses in the trust field. After the initial shock and disgust about the ill-named Tax Fairness Act of 2006, trusts bounced back with a truly amazing variety of strategies to adjust:
A. The Tory (Conservative) Party prevailed in the recent election. So trusts are adjusting to the new reality.
B. You'd think trusts would all be huddled together around some favored strategy, but surprisingly, they have all found their own unique solutions, which tells me there's a whole lot of creative thinking going on in those boardrooms.
C. Much effort and infighting is going into tweaking the Tax Fairness Act, softening it up to be more flexible. To investors' delight, most trusts are planning to provide big, undiminished dividends even if they're taxed as corporations.
My take: Politics is working, and there won't be any dip in 2011. In fact, you now have a triple play with CanTrusts: the world's highest dividends . . . plus strong capital gains . . . plus a one-time jump in share prices as the uncertainty about 2011 evaporates in 2009. Just in the first eight months of 2008, the average total returns for Canadian Edge subscribers, counting currency shifts, have shot right past 18%. Talk about income.
Big Profits from the Silver Screen
Besides oil, infrastructure and property, there's another trust class that can give you some impressive profits: the business trusts. Most of the business trusts have NO exposure to commodity prices or foreign exchanges, so that's a big plus out of the gate.
One of my favorites is a cinema trust that's so expertly managed that it's trounced nearly all its competition. What's so unique about this trust is that while management is extremely cash-conservative, they're totally ingenious in finding ways to plump up income for their coffers and yours. They're now flashing paid ads on all their screens and that's extra gravy on top of their regular, steady, income streams. If you've ever wanted to be a movie mogul, this is the ticket.
And you have other, solid options in the business trust class ...
For instance, there's a great trust that sells all sorts of medical equipment. Their distributable cash is up an amazing 62% and they're paying out yields close to 12%. They've got the cash to make acquisitions, expand the business and still pay you a great 12% dividend.
Another favorite is a healthcare trust that just reported revenues up 50% and they're boosting distributions to unitholders by close to 19%.
And this is just capsule snapshot. I can give you at least six other business trusts that pass my tests for solid earnings and up to 14% dividends. Just accept my risk-free invitation.
Windfall Profits Without the Windfall Profits Tax
Whenever you have huge amounts of money sloshing around, you'll have a lot of merger activity. And if you happen to be the mergee, you will find yourself time and again bought out by a well-heeled buyer.
In a typical recent merger, our readers found themselves 40% richer overnight. That's a 40% cash premium they took right to the bank.
Because our desk is ground zero for takeover news and rumors, we often hear of these events far enough in advance to tell you about them.
I urge you to jump on the Canadian Edge bandwagon as soon as you can. There are a couple of mergers in the works right now, and I would love to tell you about them before they hatch into general knowledge. This is an electronic advisory, and my staff and I are geared to notifying you via instant alerts within a very few minutes.
Of course, you may not desire this kind of rapid action. Perhaps you prefer to scan our notices in leisurely fashion weekly or monthly. And that's A-OK. Canadian Edge is all things to all investors. Whatever your style may be, you'll find we have many, many ways to line your pockets with more money than you could spend!
Sudden takeovers are routine in a lucrative, fast-growing field like Canadian trusts. Now, we have just discovered that two more tempting takeover targets are quietly being courted.
Why Should You Switch to Canadian Income Trusts to Finance Your Retirement in High Style?
Canadian Trusts ... The Ideal Investment
What we have all come to realize is that Canadian trusts never were merely a clever trick to avoid taxes. CanTrusts were and continue to be a near-perfect form of investing that combines low taxes with top-level yields and total profits of outstanding predictability.
We've also come to realize that the most lucrative times are right now and in the decade ahead. Never have I seen so many fortuitous circumstances converge all at once, producing such a wealth of opportunities. Canadian Edge is a roughly 40-page electronic newsletter, and I could fill up every monthly issue with solid recommendations.
But that would be overwhelming for you as a reader. So I restrict myself to just the cream of the cream "buy-it-now" trusts that will pay you superb, world-beating dividend yields immediately, without crossing your fingers or hoping for their share price to go up.
The 300 CanTrusts on the market are a diverse bunch, and I track them all for you, but I usually restrict myself to concentrating on about 30 of the hottest and most solid growth opportunities.
Still, that gives me a whale of a lot to talk about every month.
CanTrusts Definition
You may already know that Canadian Royalty trusts are a form of investment that lets companies pay almost all of what they earn directly to you without paying taxes. And since those payments are made from pre-tax income, yields can be exceptionally high.
The most widely known trusts are in oil and gas, but there are also trusts for electric power, real estate, telecommunications, energy services, infrastructure, REITs, and natural resources plus general businesses, like transportation, healthcare, or food & hospitality.
Canadian Edge focuses on Canadian trusts of all types. We recommend that investors diversify among different industries to minimize risk while still taking advantage of the more attractive yields. Ideally, we recommend you buy all of Roger Conrad's top portfolio trusts, but there is no exact dollar minimum needed to get started.
Some of them are traded on a US exchange, but many of the most attractive ones are not. (And that usually includes those that the rest of the world is not yet aware of.) Trusts that aren't traded on a US exchange can still be bought over the counter through most brokers. You don't need a Canadian broker.
Lots More to Say, But . . .
This message has already gone on long enough to try your patience, so I can't keep rattling on, even though I would love to explain the dozens of features of Canadian Edge that make it such a dream to use:
>>> Quotes in a Snap. Our live data feed from the Toronto Stock Exchange--the only one in the country! And it comes to you with Canadian dollars already transposed into U.S. dollars.
>>> My select portfolio picks, showing you the best trusts across all industries--thus comparing, with an even hand, apples and oranges. Not an easy task!
>>> The Master Ratings, a comprehensive list of the 150 CanTrusts that qualify as being appropriate for U.S. investors. It gives you a bite-size news comment on each one . . . its dividend . . . its concise safety rating (1 to 5) . . . its other numbers . . . and my advice on buy, sell, or hold.
>>> Super-clear tax guidance: get back what they withhold at the border. You get my tax-guide online and our website also has links to the forms you need
>>> A complete archive of past issues
>>> A broker guide that tells all about buying trusts and gives you the brokers who set NO minimum investment. You can also buy some trusts directly online and bypass some fees.
>> Insider tips, like a simple way to buy any Canadian trust right here even though it may not be traded on U.S. exchanges
>>> The Eye on Trusts, a cool feature that lets you customize a roster of all the particular trusts you want to track
>>> My two recommended portfolios Conservative and Aggressive
>>> Flash Alerts, sent straight to your e-mail box (typically, once or twice a month, as needed)
>>> "In Brief", a handy digest of the month's issue for those who are lazy or pressed for time
>>> The regular monthly articles, including: My overview of the entire trust sector . . my feature article, highlighting the most interesting sector of the month . . . the #1 "High Yield of the Month" . . . and more.
Now let me end by giving you just three of the typical sort of letters I get from happy readers:
"The money I've spent on Canadian Edge is the best money I have ever spent. I have bought 1,000's of shares of Canadian trusts, and they have been profitable beyond my wildest dreams."
-- Vern A.
"I manage my son's account, and it was up 101% last year. My own account is now in the 7 figures, and the monthly dividends are just wonderful. Keep up the good work!"
--from Florida
"Roger, I marvel at your incredible professionalism and ability and can only tell you ... that I am grateful for the finest investment service I've ever subscribed to in more than 25 years of investing."
--Martin Colby
"I am taking care of my mother who is 82 and in a nursing home. Your advice has been able to keep her comfortable [even though] nursing care is so expensive. I now have a great income-producing portfolio that doesn't dip like the Dow or Nasdaq on bad days and goes up in value almost every day."
--Chuck Beeler
Cordially yours,
Roger Conrad
Editor, Canadian Edge
Editor, Maple Leaf Memo
To try Canadian Edge risk-free, please see below. You have a $99 quarterly option plus a one-year and two-year option.
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When you subscribe to Canadian Edge, you'll immediately get some or all of the bonus reports below. You'll also get your member password, which will unlock our members-only website and give you unlimited access to the wealth of information it contains.
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Canadian Edge Subscriber's Guide
Here is everything you ever might want to know about Canadian trusts . . . plus a number of things you couldn't care less about! We have packed this Subscriber's Guide with every conceivable fact about Canadian Edge. Why? Because editor Roger Conrad has a policy of answering every e-mail and phone call he gets--and there are several thousand subscribers but only one Roger! So the more complete we make the Guide, the less time Roger has to spend answering questions!
Questions like:
• How do I find something on canadianedge.com? (The Guide gives you a quick, one-paragraph description of each section of the site.)
• What do I need to do to get started? (Just have a reputable broker. But if you need, we suggest three good ones.)
• Should I follow the 1-5 safety rating slavishly? (No, sometimes a "5" is a better bet than a "1".)
• What percentage of my portfolio should be CanTrusts? (Depends.)
• Do I have to pay taxes? (Not to Canada, but the U.S. takes a flat 15%, plus any capital gains tax if you later sell at a profit.)
• What if I have computer interface trouble? (That's seldom a problem, but the Guide gives a checklist of fixes.)
• Will Roger tell me when to sell? (Sure, but the typical monthly advice is hold because most trusts are held long-term for income.)
No More Limits: What happens when the lid comes off?
Canadian trusts do have a few rules--some of them kind of straitlaced. So then, what financial difference does it make when a trust converts to a corporation and escapes those limits? This report gives you a peek into the future, examining what happened to two trusts that announced plans to become early adopters, converting three years earlier than all the other CanTrusts that are scheduled to become tax-paying corporations.
You will be encouraged to find that when the first of these two trusts shed its restrictions, it was able to take advantage of certain legal privileges that lifelong corporations just don't have. As a result, its stock price has climbed 40%! Read the rest of the story two minutes from now in Brave New World: Top Canadian Trust Conversions Set to Throw Off Big Profits.
The Hidden Boom Goes On
You read above that the most lucrative segment of Canada's trust field is Real Estate Investment Trusts, which have been giving us an exciting average profit of 68%. Canada's Best Secret: Three High-Yielding, Low-Risk Canadian REIT Bargains gives you a closer look at these little-known bonanzas. It will take you back to the good old days of 2005 in the USA!
Sitting in the Catbird Seat
There are scores of energy trusts in Canada, but most of them are pretty ordinary. However, our research keeps pointing us toward four trusts that are so strong, they overshadow the rest of them. By any standard, they're tops. One of them (which has a long reserve life, very low debt, low operating and finding costs, and outstanding payout ratio) has already made our readers 170% richer! And it has plenty left on the upside. Find out details on this dominant quartet in your instant copy of Oil & Gas Superstars: How to Profit from the China-India Growth Boom with Canadian Trusts.
To join Canadian Edge for one year, risk-free at $399, go here. ***
TWO-YEAR OPTION ($729). Subscribe for two years, save $271 and receive these additional instant bonuses by return e-mail:
A Little Something for the Skittish, the Lazy and the Totally Spooked
Perhaps all this has been a bit strong for your tastes. Perhaps all you're looking for is a safe way to get a lot more income. Then Easy Money: Three Ultra-Safe Canadian Trusts for High Monthly Income You Can Bank On is your answer. It reveals a trio of buy-and-forget beauties that can be your solution for a sleep-at-night portfolio. Even if your mother dropped you on your head as a baby, leaving you neurotically insecure, you'll feel warmly well protected by these supertrusts with their bulletproof 8%-10% monthly dividends.
A little apology, though: One of the trio recently gave our readers a total return of 112%. Sorry. But if that sort of thing should happen again, we're sure you'll adjust to it.
Go to Bed Poor, Wake Up Rich
Sometimes you're just standing in the right place and lightning strikes, drowning you in money.
More often, you have to do a little reading to find the best place to stand for a friendly strike of financial lightning. Takeover Mania: Best Canadian Trusts to Buy Now for Windfall Profits is your map to eight of the best places to stand today. Trust mergers are happening all across the Commonwealth of Canada. They may as well happen to you.
Buy an Underdog
Typically, we buy overdogs. Canadian Edge loves high-flying trusts that dominate their niche. Strength means safety.
But perhaps once or twice a month, we come across some beat-up, neglected CanTrust with a price tag so low that we have to blink our eyes and triple-check the numbers.
If it truly passes our scrutiny, we pass it directly on to you sometimes within minutes. And such is the case with the four orphans in Sleeping Giants: The Four Biggest Canadian Trust Bargains to Snap Up Now.
These underdogs never last long. Mr. Market may take naps, but he doesn't hibernate. So if you're light on your feet, you can snap up an endless series of bargains, any of which can pay for your next three-week vacation in Banff.
To try Canadian Edge risk-free for two years at $729, go here. ***
$99 Quarterly Option
Still not sure? Then try my "easy-pay" offer. Select my risk-free quarterly subscription option at the special introductory price of only $99 on a credit/debit card 'til forbid basis. You have up to 90 days to cancel and get all your money back -- 100% of it. You get the same premiums as the one-year option and complete access to all member benefits for 90 days.
To try Canadian Edge risk-free for 90 days @ $99 on a til cancel credit/debit card basis, go here. ***
Money-Back Guarantee
Take your time. Enjoy all the perks of your subscription for up to 90 days. Read Canadian Edge and all the bonuses and special alerts, visit the website, explore the archives, paper-trade our recos--whatever you need to feel 100% comfortable. Then if you don't think it's all we've told you, just ask for your money back, every penny. KCI Communications has taken all the risk, and you haven't. It's that simple.
Walter N. Pearce
President, KCI Communications
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