These former trusts offer high payouts

These two former income trusts recently converted to corporations in response to Ottawa’s tax on income-trust distributions. That means they must now pay corporate taxes. Even so, their high payouts (which are now dividends) seem secure.

PENGROWTH ENERGY CORP. $12 (Toronto symbol PGF; Aggressive Growth Portfolio,… Read More

Pengrowth converts

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… Read More

Updating Indigo, Tim Hortons, Pengrowth and Linamar

INDIGO BOOKS & MUSIC INC. $15 (www.chapters.indigo.ca) continues to see strong demand for its Kobo e-book downloading service. During the 2010 Christmas shopping season, the company’s e-book sales were 50 times higher than a year earlier. Kobo now has customers in over 130 countries. Hold… Read More

Pengrowth set to convert

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… Read More

Updates on IMPERIAL OIL, BCE INC. and PENGROWTH ENERGY TRUST

IMPERIAL OIL $37.45 (Toronto symbol IMO; Shares outstanding: 847.6 million; Market cap: $31.7 billion; TSINetwork Rating: Average; Dividend yield: 1.2%; www.imperialoil.com) owns 70% of the massive Kearl oil-sands project in Alberta. Imperial’s parent company, ExxonMobil Corp. owns the remaining 30%.

It will cost a total of… Read More

Telus poised for wireless gains

In the past few years, Telus has invested heavily in its wireless networks. These upgrades have been costly, but they are paying off, particularly as more people use mobile devices to access the Internet.

The shift to wireless has forced Telus to restructure its traditional phone… Read More

Post-conversion yields should hold steady

PENGROWTH ENERGY TRUST $12.42 (Toronto symbol PGF.UN; Units outstanding: 320.1 million; Market cap: $4.0 billion; SI Rating: Average; Dividend yield: 6.8%; www.pengrowth.com) produces oil and natural gas in western Canada and off the Nova Scotia coast. Its production is weighted 51% to oil and 49%… Read More

The Successful Investor Hotline – Friday, October 22, 2010

ENCANA CORP., $28.26, Toronto symbol ECA, fell 7% this week after the company reported lower-than-expected earnings.

In the three months ended September 30, 2010, Encana earned $98 million, or $0.13 a share (all amounts except share price in U.S. dollars). These figures exclude a $331-million… Read More

This royalty trust’s payout should stay high

On January 1, 2011, Ottawa will impose a tax on distributions of income trusts and royalty trusts. (Royalty trusts are a form of income trust. They profit from royalties associated with the sale of oil, natural gas or minerals.) The new tax will put income… Read More