Here’s a convenient way to hold some of the top real estate investment trusts (REITs)

The federal government’s tax on income-trust distributions has now been in effect for a little more than six months, since January 1, 2011. However, Ottawa feels the income-trust business structure is still appropriate for real estate investment trusts (REITs), so it has exempted REITs from the new tax. That’s great news for Canadian income seekers. What’s more, as we predicted in our Canadian Wealth Advisor newsletter, most REITs have moved up in the past year—including our recommendations. That’s because REITs’ high yields have attracted a lot of investor attention as trusts converted to corporations, or cut their distributions in response to the new tax. (Real estate investment trusts resemble income trusts, but with a key difference: REITs invest in income-producing real estate, such as office buildings and hotels. We recommend a carefully selected group of REITs in Canadian Wealth Advisor.) [ofie_ad]

This exchange traded fund holds 13 real estate investment trusts

In the latest Canadian Wealth Advisor, we’ve updated our buy/sell/hold advice on the iShares Canadian REIT Sector Index Fund (symbol XRE on Toronto), an exchange traded fund that holds some of the leading Canadian REITs. This ETF has moved up over 20% for us in the past year. In Canadian Wealth Advisor, we look to see if it has even more gains ahead. iShares Canadian REIT Sector Index Fund holds the 13 Canadian REITs in the S&P/TSX Capped REIT Index. The weight of any one REIT is limited to 25% of iShares CDN REIT Sector Index Fund’s value. RioCan REIT is the fund’s largest holding, at 25.0%, followed by H&R REIT (12.7%), Calloway REIT (8.5%), Canadian REIT (8.4%), Boardwalk REIT (7.0%), Dundee REIT (6.3%), Canadian Apartment Properties REIT (5.6%), Primaris Retail REIT (5.4%), Cominar REIT (4.5%), Chartwell Seniors Housing REIT (4.5%), Allied Properties REIT (4.2%), Artis REIT (4.0%) and Extendicare REIT (3.2%). iShares CDN REIT’s expenses are just 0.55% of its assets. The fund yields 5.0%. You can get the latest issue of Canadian Wealth Advisor—which includes our full analysis and clear buy/sell/hold advice on the iShares Canadian REIT Sector Index Fund—absolutely FREE when you take a no-risk, 1-month FREE trial to Canadian Wealth Advisor today. Best of all, your FREE trial contains 5 in-depth Special Reports, access to our weekly Email/Telephone Hotlines and much more. Don’t wait! Click here start your 1-month FREE trial to Canadian Wealth Advisor now.

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Pat McKeough

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Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund.. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

AI Investing

Artificial intelligence (AI) is essentially the merging of today’s big computing with big data. This has resulted in breakthroughs in everything from creating machines to recognize faces with more accuracy than a human, to the development of chatbots able to collect, organize and simplify all the Internet has to say on any topic.

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.