an rrsp

PENN WEST PETROLEUM $18.34 (Toronto symbol PWT; Shares outstanding: 466.9 million; Market cap: $8.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.9%) is one of North America’s largest oil and gas producers. The company produces an average of 156,107 barrels of oil equivalent per day (weighted 63% to oil and 37% to natural gas). In the three months ended June 30, 2011, cash flow per share rose 7.1%, to $0.85 from $0.62, mostly due to higher oil and gas prices. The company owns 50% of the huge Cordoba Embayment shale-gas project in B.C. Japan’s Mitsubishi Corp. owns 30%, state-owned Korea Gas Corp. owns 5%, and four other Japanese companies own 3.75% each. Penn West’s partners are spending a total of $850 million to earn their stakes....

PEYTO EXPLORATION & DEVELOPMENT CORP. $22.04 (Toronto symbol PEY; Shares outstanding: 133.1 million; Market cap: $2.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.3%; www.peyto.com) produces and explores for oil and natural gas in Alberta. The company changed its name from Peyto Energy Trust after it converted from an income trust to a dividend-paying stock on December 31, 2010. Peyto’s average daily production of 31,531 barrels of oil equivalent (including natural gas) is weighted 88% toward gas and 12% to oil. In the three months ended March 31, 2011, Peyto’s cash flow rose 9.8%, to $0.56 a unit from $0.51 a year earlier. The shares trade at 9.4 times the company’s forecast 2011 cash flow of $2.35 a share. Peyto’s long-term debt of $450 million is a low 15.5% of its $2.9-billion market cap....

Some investors think by focusing our portfolio management strategy on stocks, and staying out of bonds and fixed-return investments, we’re missing out on bonds’ ability to lower portfolio volatility.

It’s true that bonds do tend to reduce your portfolio’s volatility, since they tend to rise when stock prices fall....

BELL ALIANT INC. $27.01 (Toronto symbol BA: Shares outstanding: 227.8 million; Market cap: $6.2 billion; TSINetwork Rating: Above Average; Yield: 7.0%; www.aliant.ca) provides telephone services in Atlantic Canada, as well as rural parts of Ontario and Quebec. BCE Inc. owns 44.1% of Bell Aliant. Bell Aliant converted from an income trust on January 1, 2011. The conversion forces Bell Aliant to pay income taxes. In response, the company changed the rate and frequency of its payout, starting in March 2011. The company now pays quarterly dividends of $0.475 a share. The new annual rate of $1.90 (down from $2.90) now yields 7.0%. That’s still a high payout for a dividend paying stock and high as well compared to similar telephone utilities. As well, investors who hold Bell Aliant outside an RRSP benefit from the dividend tax credit....

ARC RESOURCES LTD. $26.34 (Toronto symbol ARX; Shares outstanding: 275.9 million; Market cap: $7.3 billion; TSINetwork Rating: Speculative; Dividend yield: 4.6%; www.arcresources.com) produces oil and natural gas in western Canada. Its average daily production of 84,686 barrels of oil equivalent (including gas) is weighted 61% to gas and 39% to oil. In the three months ended December 31, 2010, ARC’s revenue rose 18.2%, to $329.3 million from $278.6 million a year earlier. Cash flow per share rose 10.0%, to $0.66 from $0.60. Increased production and higher oil prices pushed up results. The company has $803.6 million of debt. That’s a low 11.0% of its market cap. The shares trade at 8.8 times ARC’s forecast 2011 cash flow of $2.99 a share. It plans to spend $625 million on exploration and development this year, up 5.8% from 2010....

PEYTO EXPLORATION & DEVELOPMENT CORP. $19.61 (Toronto symbol PEY; Shares outstanding: 121.9 million; Market cap: $2.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 3.7%; www.peyto.com) is the new name of Peyto Energy Trust after it converted to a dividend-paying corporation on December 31, 2010. Peyto produces and explores for oil and natural gas in Alberta. Its average daily production of 32,500 barrels of oil equivalent (including natural gas) is weighted 85% toward gas and 15% to oil. At current production rates, Peyto has proven oil and natural-gas reserves that should last 11 years. Peyto’s cash flow was $0.47 a unit in the three months ended September 30, 2010. That’s up 20.5% from $0.39 a year earlier. The shares trade at 8.6 times the company’s forecast 2011 cash flow of $2.28 a share. Peyto’s long-term debt of $455 million is a reasonable 19% of its $2.4-billion market cap....

PENGROWTH ENERGY CORP. $12.66 (Toronto symbol PGF; Shares outstanding: 320.1 million; Market cap: $4.1 billion; TSINetwork Rating: Average; Dividend yield: 6.7%; www.pengrowth.com) is the new name for Pengrowth Energy Trust after it converted to a dividend-paying corporation on January 1, 2011. Pengrowth has large tax pools it can use to offset the new taxes. That will let it keep its monthly payout at $0.07 a share, for an annualized yield of 6.6%. The monthly payout will be in the form of a dividend. That means investors who hold Pengrowth outside an RRSP will benefit from the dividend tax credit. Pengrowth is still a buy.

PENGROWTH ENERGY TRUST $12.96 (Toronto symbol PGF.UN; Units outstanding: 320.1 million; Market cap: $4.1 billion; TSINetwork Rating: Average; Divid. yield: 6.5%; www.pengrowth.com) will convert to a dividend-paying corporation on January 17, 2011. It will then trade as Pengrowth Energy Corporation under the symbol “PGH”. Pengrowth has $2.7 billion of tax pools it can use to offset income taxes. It expects to be able to delay paying taxes until after 2014. That will let Pengrowth keep paying $0.07 a month (it now yields 6.5%). Starting with the February 15, 2011, payment, the monthly payout will be in the form of a dividend. That means investors who hold Pengrowth outside an RRSP will benefit from the dividend tax credit....

ARC ENERGY TRUST $25.59 (Toronto symbol AET.UN; Units outstanding: 275.9 million; Market cap: $7.0 billion; TSINetwork Rating: Speculative; Dividend yield: 4.7%; www.arcresources.com) will convert to a dividend-paying corporation on January 17, 2011. It will then trade as ARC Resources Ltd. under the symbol “ARX”. ARC has $2.2 billion of tax pools it can use to offset income taxes. That will let it keep paying $0.10 a month (it now yields 4.7%). Starting February 15, 2011, these dividend payments will benefit from the dividend tax credit if you hold your shares outside of an RRSP or a RRIF. ARC Energy is still a buy.

BELL ALIANT INC. $26.70 (Toronto symbol BA: Shares outstanding: 127.4 million; Market cap: $3.4 billion; TSINetwork Rating: Above Average; Yield: 10.9%; www.aliant.ca) is the new name of Bell Aliant Regional Income Fund after its conversion to a dividend-paying corporation on January 1, 2011. Bell Aliant has over 3.1 million telephone customers in Atlantic Canada and rural parts of Ontario and Quebec. BCE owns 44.1% of Bell Aliant. The conversion forces Bell Aliant to pay income taxes. In response, the company will change the rate and frequency of its payout. Starting in March 2011, it will switch to quarterly dividends of $0.475 a share. The new annual rate of $1.90 (down from $2.90) will yield 7.1%, based on today’s price....