Canadian royalty and income trusts generated superlative returns during what was clearly a golden age for the tax-efficient, investor-friendly business structure.
The minority government’s 2007-08 federal budget passed the Canadian House of Commons June 12, fulfilling a long-held expectation.
Last month, we witnessed the first management buyout of a Canadian trust: CCS Income Trust (CCR.UN, CCRUF).
Between now and 2011, Canadian trusts are expected to continue yielding high returns. Avoiding 2011 taxation on both sides of the border and maximizing a trust’s ability to pay big distributions can be as easy as LP conversion.
Two new trusts are being added to the Dividend Watch List because of operating issues, Rydex has issued a Canadian dollar ETF, and Bay Street has downgraded several trusts that I think are still worth buying.
The July High Yields of the Month are Energy Savings Income Trust and Newalta Income Fund.
The Tax Fairness Plan, Finance Minister Jim Flaherty’s levy on income trust distributions at the entity level, now has the force of law.
For those who held and hoped that the folks in Ottawa wouldn’t pass the federal budget legislation, it’s over and done.
The 2007-08 federal budget passed in the Canadian House of Commons last night by a vote of 157-103, fulfilling a long-held expectation.
For the second month in a row, no oil and gas producer trust cut its distribution.
