The Canadian Royalty Trusts [or Canroy’s for short] sold off big today.[For a great post on Canroys, check out this post on Wealth Building Lessons.] People just dumped them. I lightened my load a little bit too. I sold about 15% of my Canroys and bought gold stocks instead.
I think a lot of it is an over-reaction. Even if the government does raise the taxes 40% some of them are yielding over 15% at these low levels. In the energy sector, between 40-60% of the dividend is termed as return of capital so its tax exempt.
So a 15% yield now becomes a 12.4% yield. Thats not so bad is it? What do you guys think?
Besides, on existing canroys theres a 4 year grace period. Maybe the next Canuck Finance Minister might reverse the decision.
But even then, just to make sure I’m not mistaken for a socialist, The POX on you Mr Flaherty!!!
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