Pengrowth set to convert

Article Excerpt

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. Pengrowth Energy is still a buy. buy…

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