Friday, August 05, 2005

Income Trusts

I just finished reading the book, Canadian Income Fundsand found it to be pretty good. The best thing I liked about it was that it did not paint Income Trusts as the be-all-and-end-all investment vehicle. Some authors believe that if they are writing a book about a certain investment type they have to be all positive and subsequently ignore the negatives (and the risks!). This book does a good job of explaining what those risks are, even hinting that income trusts may be near the tail end of a bubble that once interest rates move up in a concrete fashion - look out below. It provides a pretty comprehensive list of all Income Trusts available in Canada and is a good starting point for some research.

If you look at my portfolio, you will see that I own some Income Trusts - mainly my iUnits iREIT index fund. I have found this to be a pretty good income generator providing me with about a 7% income stream on my investment, which I reinvest right back into the fund. I also like it because it is diversified across a number of REITs which I believe limits my risk in the sector. I only wish the folks at iUnits had an oil and gas income trust.

Transactions for the week:
IGM Financial Dividend: $33.44
Reinvest Merck Dividend: $15.25
Reinvest iUnits Canadian Bond Fund Dividend: $19.31
Reinvest iUnits iREIT Fund Dividend: $21.43

Good Book:
As mentioned, Canadian Income Funds is a good primer on Canadian income funds as a source of income for a portion of a portfolio.


Anonymous Anonymous said...

Dear Sir

In your portfolio I see two entries :

1. Navi quest LT Growth
2. BearingPoint Inc.

Are these stocks or mutual funds?



8/05/2005 05:49:00 PM  
Blogger The Dividend Guy said...

The Naviquest LT Growth is the fund that I hold in my pension plan through the company that I work with (BearingPoint). I do not have a choice on this and must use mutual funds. BearingPoint Inc. is stock that is in my Employee Stock Purchase Plan through my employer. Employees pool money and then every six months a purchase is made on our behalf with a 15% discount. The ticker is BE on the NYSE.



8/05/2005 06:56:00 PM  

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