| Personal Finance Weekly You're receiving this e-mail at finan4@finanmart.com because you subscribe to Personal Finance Weekly. Never miss an email. To ensure delivery directly to your inbox, please add postoffice@kci-com.com to your address book today. Roger Conrad scores 13% dividends even in his conservative portfolio and up to 29% dividends in his aggressive holdings. And the on-fire Canadian energy integrateds Roger covers are paying out 16.94% in monthly checks now. Please consider his message. Thanks, The KCI Editors | |||
| 16.19% yields -- and 18 out of 19 holdings have dividends that have never been cut | |||
| by Roger Conrad, Editor, Canadian Edge at KCI Communications Near-perfect safety and 16% dividends. With all the talk about shrinking dividends, you should know that we have 18 (out of 19) holdings with dividends that have never been cut. So, why let your cash just sit? Here's an investment that pays you up to 16.19% with steady, dependable yields. And another paying up to 15.03%, again with near-perfect safety. ... three more paying 12%-plus .. ... another three paying 11%-plus .. ... and one super-safe-and-cautious play that, even so, pays 9.96% ... ... and every last one characterized by ... N E A R - P E R F E C T S A F E T Y I know you may be skeptical. When even high-risk junk bonds are paying only 6%-9% – how can any safe investment be yielding ... 13%-16% ... or even more I'll explain in a moment. But first, please consider -- A Google partner that pays you 15.03% (monthly!) while Google pays you ... zip. A safe-and-boring quasi-public utility with a captive market, paying .. 16.19% A firm diversified across the entire energy sector for added safety .. dividend 13.38% A telecom giant with phone, web & digital TV customers virtually locked in, growing 18%/yr, and still paying dividends of 12.08% An oil pipeline company with 35% growth and a 11.55% don't-touch-me dividend. Who knew? Well, my readers know. But they tell me they would prefer to keep the Canadian Edge high yields to themselves. Your Broker Doesn't Want to Tell You There are reasons your broker doesn't do this, such as ... I make bigger commissions selling you the stock du jour .. too much paperwork ... international investing too complicated .. Might as well add "too lazy". Because you can buy shares in these trusts wherever you now buy stocks, at comparable (or NO) commissions and with comparable ease. The shares are as liquid as Exxon-Mobil – and pay a lot more. Some may have funny names (Consumers Waterheater Income Fund is my personal favorite), but ... ... there is nothing funny about an 19.13% yield – which is what Consumers Waterheater Income Fund pays, with near-perfect safety. My name is Roger Conrad. My information service, CANADIAN EDGE, has been analyzing these trusts on behalf of investors like you since they came into existence several years ago. I spend my days and nights reading up on, thinking about, analyzing – and visiting – Canadian income trusts. They are my life. I think I understand them better than anyone in the In this letter, I'll explain: What these trusts are ... How they work ... Why they pay you such astonishing yields. I'll back up my "near-perfect safety" claim with cold hard facts. And show how, with a bit more risk, you can get yields approaching 30% ... and even more. (One trust yields 29.6%, yet I rate it a "Buy" for aggressive investors. Yes, risk-hounds, even though this letter focuses on conservative income investing, I'll also touch on plays that get your pulse racing.) I'll discuss taxes, always a consideration when you invest in something just a bit different. And it's only proper to examine any potential risk. I'll do so in an honest and straightforward manner. In the current investment climate, the last thing you need is more hype. For example, is there a risk share prices will tank if a Canadian income trust converts to a corporation? (The short answer is: Share prices are at least as likely to rise. Details in a moment.) Lastly, I'm going to talk about you. Whether you need to make back money lost thanks to Wall Street greed. Or, if you don't want to delay the retirement you've worked hard for and deserve. Well, here's a way to do both: Look north. Onward ... to Canada .. and re-charging your wealth. Safety First? Definitely, But Canadian income trusts are pass-through entities. That is, they pass almost all their profits through to you, the shareholder, in the form of dividends. In that sense they resemble U.S. real estate investment trusts (REITs) -- except that the Canadian trusts must pass through a greater percentage of profits to shareholders than U.S. REITs are required to do -- up to 85%. The trusts were created by law, initially to benefit oil and gas industries, a backbone of the Canadian economy. Canada figured its oil and gas producers needed a way to compete with the Exxons of the world for investor dollars. So, eye-popping dividends might be just what the doctor ordered. But they proved such runaway successes that other Canadian industries also reorganized as trusts. There are now over 200 Canadian income trusts -- in everything from And out of those 150, only a select 33 qualify for my seal of approval – awarded only to those trusts that pass exacting tests for safety, stability, sound management, dividend maintenance and growth potential. Sometimes Canadian income trusts are new ventures. Often they're spinoffs of well-established firms. Some are trusts of trusts, resembling our mutual funds. But all are required by Canadian law to pass through most of their profits to you. And they do. On average these income trusts pay out 80%-85% of profits to you. (Try persuading Exxon-Mobil to do that.) And most do trusts so monthly. That's right – a dividend once a month, not once a quarter. Like a paycheck. What's more, these trusts operate in the soundest economy among all the G-7 developed nations. Not all Canadian income trusts are good investments. Indeed, after Parliament created them, a bunch of fly-by-night trusts hit the market, snaring investors with promises of too-good-to-be-true tax breaks. Thankfully, most of those trusts have dried up and blown away, leaving the best-managed ones standing. Now, please be aware: some trusts' share prices can – and do – fluctuate. Since last spring, market madness has many oil trusts especially selling at bargain basement rates. But it's actually great news for you. Because with share prices low, the already-handsome dividend yields are now, in a word, spectacular. And for most of the Canadian income trusts we follow, dividends are growing. These trusts have managed themselves cautiously and prudently, to survive even the worst economic times. They are the ones that put the interests of you, the shareholder, first. Now that their prices are down to levels where you can achieve 20%-plus yields with close-to-ideal safety, plus the expectation that both dividends and share prices will grow ... why in the world would you even consider a 2% Treasury yield? We're About To Take ...The Grandma Test I'm familiar with all 200+ Canadian income trusts and I recommend only the best. These are the ones that have passed the market's toughest "stress tests." They have the best businesses ... the most conservative management ... the biggest cash hoards ... the highest dividends ... and the lowest risk. Right now I'm covering 33 such trusts. I've put my own money in a number of them, from those that are super-safe to a few that are "out there." Even the risky ones don't trouble me though. I sleep like a baby. Especially when I'm getting dividends in the 30% range. But maybe that's not good enough for you. Maybe you're saying, So what? Asking, What about my grandmother's money? Where would I put that? What would be safe enough for her nest egg? Fair question. I've administered the "grandmother test" and winnowed down my 33-trust list to a Top Ten. These Top Ten are the safest of the safe ... the 10 Canadian income trusts with which I'd feel comfortable entrusting even Grandma's nest egg. But will they be safe enough for you? Here are the facts. Please judge for yourself. When It Comes To Income Investing .. I've already mentioned one of my top choices, the oddly named Consumers Waterheater Income Fund (US symbol CSUWF). This duck is odd in other ways too. Its principal business is leasing installed water heaters to residential customers in 19.13% with But what a cash cow CSUWF is! It provides a basic necessity of life – hot water – to a captive audience, about half of the Toronto residential market. It cuts risk further by outsourcing service on the water heaters. It's been in business more than 40 years, during which cashflow and market share have continued stable or slowly growing. And, nice touch, it pays dividends once a month.. near-perfect safety Best of all for you, you can buy at a ridiculously low price. It's the same great company selling now for half price, featuring a mind-blowing 18.94% annual return. CSUWF is a portfolio choice anyone could love, an investment that lets you sleep at night with a smile on your face. But it's not the only one. It isn't even the highest-yielder in my conservative portfolio. That one would be ...
15.03% with The online engine that out-Googles Google. Imagine you'd bought Google a while ago. Imagine you'd gotten some terrific appreciation, but had trouble sleeping as the stock price bounced around. near-perfect safety Now ... imagine instead that you'd invested in this Canadian online publisher/search engine, a Google partner, that pays a current dividend of 15.03% (and yes, pays it monthly). Whose market cap, CD $2.7 billion, makes it one of 16.19% with near-perfect safety An energy company that does it all. Much of Canada's economy is based on energy and natural resources, and many income trusts are in the business of oil and gas extraction. While these energy trusts have had their high-flying moments, most are in the doghouse these days; you won't find me talking much about them in this letter. Diversified energy companies are a different story though. This trust has interests in gas extraction, pipelines, gathering and processing, energy services, even power generation including "green" wind power. With a three-year growth rate of 18%, there's even the prospect of long-term capital appreciation. In the short term though, this company's shares are one of the best bargains around – making the 16.94% dividend too tempting to pass up. 12.08% with near-perfect safety The telecom that communicates $$$. This communications conglomerate has consolidated a number of smaller telecoms into one of Canada's largest corporate entities. With a market cap of more than CD $10 billion and a three-year growth rate exceeding 18%, it's both a growth and an income play. It pays investors handsomely – 12.35% – and, let it be noted, monthly. 12.02% with Growth + income in a sheltered oil & gas sector. When you drill for oil and gas, you have your ups and your downs. But regardless of market price, producers rarely turn off the spigots. It's too costly. No, they keep pumping the stuff to the refineries and downstream markets, through ... pipes. near-perfect safety Say hello to the pipeline industry – the stable, fluctuation-resistant end of the energy biz. Back last June when oil prices were sky-high, this trust's shares were up near US $19. Now the price has been beaten back down to around US $12 by investors who don't necessarily understand the fine points of energy economics. That offers you a growth + income opportunity with great safety. This trust reports record growth and income in every recent year, with a growth rate around 35%. You just sit back and collect that (yes, monthly) 12.08% distribution check while you wait for share prices to start rising again. Maybe it's magic? From schools to street vendors to 11.9% with haute cuisine -- this trust "feeds" thousands every day. near-perfect safety The fact this trust has created a totally recession-proof business is exemplary enough. But the real feat is their drum-tight logistics. Hard to imagine how they do what they do in the first place. And yet they do it everyday, 365 days a year. They are, foremost of all, bulk and brand food distributors to schools, universities, hospitals, government institutions, hotels, grocers and convenience stores, all under rock-solid contracts. Since schools must feed their students and hospitals are unlikely to starve their patients, you can appreciate the enduring and safe nature of this business. And there's more. They provide everything from snacks, sweets and drinks to street vendors -- to the most exotic seafood to Canada's legendary restaurants in Quebec and Ontario. In all, they sell over 8,000 food products to over 3,000 businesses. Every day. But that's not all -- their food handling and preparation business is another lucrative revenue stream -- all under iron-clad contracts. And how does the trust perform for their investors? Their 2009 1st qtr earnings jumped 42.7% over 2008, with a 44.2% jump in cash flow. This trust continues to reinvent itself quarter after quarter with the same result -- more profit and more cash flow. I'm strongly recommending this trust to you because you can still buy it at barely book value and it's yielding a solid 11.9%. And remember -- it's a dream of a business -- selling what everyone must have -- foodstuffs-- to institutional clients who must provide it every day. The Olympic builder that doubled its dividends. A trailblazing pioneer in "sustainable" design, this trust was tapped to build a revolutionary new sports complex for the 2010 Vancouver Olympics. But this top-flight trust's expertise goes well beyond design. They've got their hands into everything from oil sands mining to school construction to diesel desulphurization to syncrude plants to nuclear cooling towers. And since Canada's is set for a sweeping infrastructure rebuild, this trust should be a prime beneficiary. While many businesses languished in the 4th quarter, this trust saw its revenue surge 31.5%. And shareholders saw their dividend check double. Insurance For Investors When you join Canadian Edge, the first thing to catch your attention will be my risk-rating system. Most of my conservative trusts carry a risk rating of "1" – the lowest on a 1-to-6 scale where 6 is the riskiest. You'll find that most trusts in my conservative portfolio rate a perfect "1" for safety -- even with yields up to 22%.
105.1% Total Return ... Despite one of the worst down markets in history, most of our picks have been stellar winners …
In-depth analysis on a weekly-plus basis. The monthly CANADIAN EDGE serves up the latest news and analysis on income trusts, including "High-Yield Picks of the Month," the updated Conservative and Aggressive Portfolios, and a special feature – rankings of dozens more income trusts that show promise but haven't yet been examined in depth. Even though we haven't put these trusts under our analytical microscope, we still assign a 1-to-6 safety ranking based on their published financials and statements. Expect serious, thoughtful analysis at length, not CNBC-style sound-bites. The current issue of CANADIAN EDGE runs 82 pages. FLASH ALERTS supplement the monthly analysis, focusing in depth on trends and events that can affect your holdings. The weekly MAPLE LEAF MEMO rounds out the picture, updating you on the latest market intelligence. 24/7 updates in U.S. dollars. Track Toronto Exchange quotes with just a 15-minute delay via our Canadian partner, MPL Communications Inc., Canada's largest provider of independent investment advice. All quotes are converted instantly to U.S. $$$ so you don't have to punch a calculator while you're trying to concentrate. Custom portfolios. Set up your own portfolio – your actual holdings or just a "wish list" – and link it right to Toronto Exchange quotes with our exclusive live feed (converted into US $$$ for you). You always know where you stand with just a 15-minute delay. Our "How They Rate" tables are easy and quick to customize. Taxes, currency conversions and more. How will Broker guide. You're a Archives. Every article ever published in CANADIAN EDGE, available with a click. And if that doesn't do it, how about this: every CANADIAN EDGE subscriber gets personal access to me. The first thing you learn when you subscribe is how to contact me by e-mail. I answer urgent messages urgently ... and every message promptly, within a day or two. That's a promise. When you subscribe, you'll be directed to the CANADIAN EDGE website and issued your personal Secret Password that gives you unlimited 24/7 access to everything we publish, from today's news all the way back to the first issues. But even before your first website visit, you'll receive by return e-mail the Canadian Edge Subscriber's Guide, with everything you need to know to start investing in Canadian income trusts. The Subscriber's Guide answers all your questions – questions like ... • How do I find what I'm looking for on your website? The Guide provides concise descriptions of every section and feature. • How can I find a reputable broker who understands Canadian income trusts and can conduct trades for me quickly, efficiently and at low cost? The Guide names three national U.S. brokerage firms, all well capitalized and widely respected. • Is a trust ranked "1" always safe? Is a trust ranked "6" always risky? The short answer: Not necessarily. The Guide explains the 1-to-6 safety ranking system, and how to use it so the investments you choose don't keep you up at night. • What percentage of my portfolio should I invest in Canadian income trusts? Of course that's up to each individual investor, but the Guide includes a discussion to help you decide the question for yourself. • Will I have to turn my earnings over to the tax-man? And which tax-man – U.S. or Canadian? Taxes are a subject of great potential confusion for U.S. investors, but the situation actually is fairly simple. Consult the Guide for authoritative explanations. • What if I can't log on or encounter computer problems? It rarely happens, but consult the Guide for a checklist of fixes. • I know I'll get buying guidance but ... will you let me know when it's time to sell? Short answer: Yes, but don't expect too many "sell" advisories. Most Canadian income trust investments are not speculative – rather, they're long-term "holds" focused on big dividends, usually paid monthly. Subscribers Chime In: 'Portfolio Up to 101% To 7 Figures' ... 'Profits Beyond Wildest Dreams" .. In today's market climate, can it be true that well-managed companies, with huge dividends and bright prospects, still exist just to our north? Yes, say the folks who would know ... our subscribers. Here's just a sampling. "The money I've spent on CANADIAN EDGE is the best money I have ever spent. I have bought thousands of shares of Canadian trusts, and they have been profitable beyond my wildest dreams." "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!" "This is the best advice you have ever produced. You address every aspect of this investment with informative and insightful information ... with the world's best dividend and growth potential." "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." This could be the turnaround opportunity of your investing lifetime. Don't say no. Take advantage of our 3-Point No-Risk Guarantee and subscribe now. Sincerely, Roger Conrad Subscribe to CANADIAN EDGE today. Choose the plan that best fits your needs – You Receive These 2 Bonus Special Reports F*R*E*E* --
To join Canadian Edge for one year, risk-free, at $399, go here. TWO-YEAR MONEY-SAVER OPTION – $729 Subscribe for two years, save nearly $300, and get three Special Reports: Bonus Report #1: Three Ultra-Safe Canadian Trusts for High Monthly Income. Buy 'em and forget 'em – except at the end of the month when the payments roll in! With dividend rates of 8%-10%, these super-trusts are the closest things to bulletproof you can find in today's roiling markets. Bonus Report #2: Oil and Gas Superstars: How to Profit from the China-India Growth Boom with Canadian Trusts. Canadian energy trusts promise jaw-dropping payoffs for investors ready to accept greater risks – 17% combined yields in the case of one standout trust. This Bonus Special Report tells you all about this energy play and three others like it. Bonus Report #3: Three High-Yielding Low-Risk Canadian REIT Bargains. We've seen 68% average profit in Canadian real estate trusts, and the end is not in sight. Learn why real estate is still a terrific and relatively safe investment north of the border in this standout analysis. To join Canadian Edge for two years, risk-free, at $729, go here. EASY PAY OPTION ($99 PER QUARTER) Prefer to space payments out quarterly? Our $99 plan is for you. We charge your credit or debit card $99 every three months until you tell us to stop. You'll get the same bonus Special Reports that one-year subscribers enjoy, and the same 90-day guarantee of satisfaction. 9 0 - D A Y N O - R I S K G U A R A N T E E No matter which subscription plan you choose, you risk nothing when you subscribe. That's because of our unique 3-Point Guarantee: 1. Cancel any time within 90 days of your subscription 2. Request a FULL REFUND – 100% of your subscription price, regardless of subscription plan 3. Receive refund promptly – no hassles, no questions ________________________________________________________ To recap, here's what Canadian trusts and US equities give you:
If you're still not sure that Canadian trusts give you the soundest, highest yields anywhere today, please consider -- Q: Of all the G-7 nations, which has the most stable economy? A: Canada. Q: Which Canadian province saw property values rise 20.1% in 2008? A: Q: Which chairman of the President's Economic Recovery Advisory Board and ex-chairman of the Federal Reserve (hint: there's only one) said the A: Paul Volcker, speaking in Toronto in February. Yes, Canada. Our friendly, solvent, English- (and French-) speaking neighbor to the north, is not only safe and stable: It's the go-to source for the most eye-popping dividend yields in the developed world ... or possibly anywhere. To get on board Canadian Edge, please go here.Who Am I? Who Are We? Roger S. Conrad, editor of CANADIAN EDGE, is the leading U.S. authority on Canadian income trusts. He has covered them since inception. His proprietary safety rating system, covering dozens of Canadian income trusts, gives investors the extra level of assurance that's so helpful when branching out into the unfamiliar. CANADIAN EDGE is an exclusive advisory from KCI Communications Inc., publisher of the award-winning PERSONAL FINANCE and other news and information advisories serving serious investors with insight and analysis to help build wealth and provide for a safe and secure retirement. | |||
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16.19% dividends that have never been cut
