Wednesday, June 23, 2010

How to find high yielding investments

How to find high yield investments:
With CD and money markets paying so little interest most investors are considering high yielding investments like dividend paying stocks. If you are looking for high yielding investments like dividend paying stocks, then you might want to consider energy trusts. There are Canadian energy trusts and U.S. energy trusts.

A Canadian energy trust is Pen Growth Energy Trust (PGH). PGH currently has a yield around 7.9%. The Canadian trust may be a better market than the U.S. as the U.S. most likely will face more regulation and cost since the oil spill in the Gulf. However, the Canadian market is heavily taxes. You may to want consider this before you invest.
There are several U.S. energy royalty trusts. Permian Basin Royalty Trust (PBT) is a U.S. royalty trust. PBT current has a yield of 6.5%. It operates in West Texas so it will probably be unaffected from the gulf oil spill. Prudhoe Bay Royalty Trust (BPT) has a yield of over 10%. It operates in Prudhoe Bay Alaska far away from U.S. Gulf Coast. These trusts have been favorite picks of Cramer and dividend seekers as indicated by the following links:

http://www.stockpickr.com/port/Cramer-s-High-Dividend-Energy-Trust-Stock-Picks/

http://www.dividenddetective.com/canadian_royalty_trusts.htm

One draw back to the royalty trusts is as a trust they issue a k-1 instead of a 1099 so it may make your taxes more complicated. If you are interested in high yielding trusts, then you should talk to your broker or CPA about the consequences of investing in these trusts.

Here is a link with more information:

How to find high yielding investments

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