For Pengrowth, a Double Exception

Article Excerpt

We’ve mostly avoided resource income trusts, due to their generally low investment quality. But we made an exception for Pengrowth (Toronto symbol PGF.UN), which is the sole oil & gas trust we recommend in The Successful Investor. We made a second exception for Pengrowth by recommending it on two of our Portfolios: our Aggressive Growth Portfolio and our Portfolio for Income-seeking Investors. The trust’s high-quality oil and gas properties make it a reasonably safe investment, compared to our other Aggressive Portfolio recommendations. We think it stands to prosper if oil settles into a long-term $40 U.S. to $80 U.S. trading range as we expect. We also like Pengrowth’s long history of steady but varying distributions since its inception in 1989. That’s why we include it on our Portfolio for Income-Seeking Investors. Its distributions will continue to vary, so it’s riskier than our average income recommendation. But we see it as safer than the average income trust. trust…

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