Comments on: How To Pick Business Trusts http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/ A Vancouverite's journey to financial freedom. Fri, 05 Sep 2008 21:45:28 +0000 http://wordpress.org/?v=2.1.2 By: FourPillars http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-429 FourPillars Wed, 11 Jul 2007 12:50:23 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-429 FJ - I left a similar comment on TMW's site - maybe u can check it out. I'd like to ask u the same question - what is the reasoning behind an investor buying an income trust, ie where does it fit in the portfolio? Mike FJ - I left a similar comment on TMW’s site - maybe u can check it out. I’d like to ask u the same question - what is the reasoning behind an investor buying an income trust, ie where does it fit in the portfolio?

Mike

]]> By: MillionDollarJourney.com http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-430 MillionDollarJourney.com Wed, 11 Jul 2007 13:21:02 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-430 Great pick FJ! I just went over their balance sheets. For once, an income trust that pays out less in distributions than their earnings. Their "owners earnings" or cash flow looks strong, cash position is increasing, along with long term debt decreasing. Great job, I'm going to look into this one further. FT Great pick FJ! I just went over their balance sheets. For once, an income trust that pays out less in distributions than their earnings.

Their “owners earnings” or cash flow looks strong, cash position is increasing, along with long term debt decreasing. Great job, I’m going to look into this one further.

FT

]]> By: MillionDollarJourney.com http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-431 MillionDollarJourney.com Wed, 11 Jul 2007 13:28:13 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-431 FP, I would say that it depends on the sector of the income trust. If you are looking for something that is lowly correlated with the general market, then REITs are a good match. Note though that all income trusts (except REITs) will face corporate tax in the near future. At which time I suspect that most trusts will have to decrease their distributions, which will result in a decrease in stock price. FP,
I would say that it depends on the sector of the income trust. If you are looking for something that is lowly correlated with the general market, then REITs are a good match.

Note though that all income trusts (except REITs) will face corporate tax in the near future. At which time I suspect that most trusts will have to decrease their distributions, which will result in a decrease in stock price.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-432 Financial Jungle Guy Wed, 11 Jul 2007 15:54:16 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-432 Thanks for the comments. I don't know all the specifics, but only REITS with high Canadian contents qualify for original tax rule. By 2011, most trusts will pay corporate taxes, but distribute dividends instead of income. To a non-registered investor, that doesn't change the after-tax distributions due to the dividend tax credits. On the other hand, this will negatively impact RRSP holders because they can't claim dividend tax credits inside RRSP, but that's already reflected in the stock price. FP - I think income trusts should be treated as a flavour of equity, although they are weakly correlated with the TSX. That adds stability to the portfolio. Thanks for the comments.

I don’t know all the specifics, but only REITS with high Canadian contents qualify for original tax rule.

By 2011, most trusts will pay corporate taxes, but distribute dividends instead of income. To a non-registered investor, that doesn’t change the after-tax distributions due to the dividend tax credits. On the other hand, this will negatively impact RRSP holders because they can’t claim dividend tax credits inside RRSP, but that’s already reflected in the stock price.

FP - I think income trusts should be treated as a flavour of equity, although they are weakly correlated with the TSX. That adds stability to the portfolio.

]]> By: Income Trusts and More - July 13, 2007 - Million Dollar Journey http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-437 Income Trusts and More - July 13, 2007 - Million Dollar Journey Fri, 13 Jul 2007 11:14:52 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-437 [...] posted earlier this week about Canadian Real Estate Investment Trusts (REITs). Thicken My Wallet, Financial Jungle, and Canadian Capitalist has continued this theme with informative articles about various types of [...] […] posted earlier this week about Canadian Real Estate Investment Trusts (REITs). Thicken My Wallet, Financial Jungle, and Canadian Capitalist has continued this theme with informative articles about various types of […]

]]> By: Thicken My Wallet » Blog Archive » How to Pick Income Trusts: its in the numbers http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-438 Thicken My Wallet » Blog Archive » How to Pick Income Trusts: its in the numbers Fri, 13 Jul 2007 14:05:07 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-438 [...] Journey and I have agreed to cross-blog on this topic this week. Here is Financial Jungle’s post on business trusts and MDJ’s post on REITs. As an investing structure designed to pay out steady [...] […] Journey and I have agreed to cross-blog on this topic this week. Here is Financial Jungle’s post on business trusts and MDJ’s post on REITs. As an investing structure designed to pay out steady […]

]]> By: Nabloid.com http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-463 Nabloid.com Thu, 19 Jul 2007 19:42:22 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-463 You can probably scratch Versacold off that list... http://www.nabloidtsx.com/another-one-bites-the-dust/ You can probably scratch Versacold off that list… http://www.nabloidtsx.com/another-one-bites-the-dust/

]]> By: This and That: Blog Edition http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-465 This and That: Blog Edition Thu, 19 Jul 2007 22:59:27 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-465 [...] Jungle wrote a series of posts on picking income trusts (business trusts, pipeline trusts, royalty [...] […] Jungle wrote a series of posts on picking income trusts (business trusts, pipeline trusts, royalty […]

]]> By: Thicken My Wallet » Blog Archive » Income Trusts: Taxes http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-476 Thicken My Wallet » Blog Archive » Income Trusts: Taxes Wed, 25 Jul 2007 12:42:21 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-476 [...] Jungle and Million Dollar Journey have each written on different types of income trusts (REITS, Business Trusts, Oil and Gas and Pipelines) while I have blogged on general financial ratios one should look at for [...] […] Jungle and Million Dollar Journey have each written on different types of income trusts (REITS, Business Trusts, Oil and Gas and Pipelines) while I have blogged on general financial ratios one should look at for […]

]]> By: The Amatureist Financial Journey – What’s is an Income Trust? http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-589 The Amatureist Financial Journey – What’s is an Income Trust? Mon, 10 Sep 2007 07:42:24 +0000 http://financialjungle.com/2007/07/11/investing/how-to-pick-business-trusts/#comment-589 [...] http://financialjungle.com/2007/07/11/investing/… [...] […] http://financialjungle.com/2007/07/11/investing/… […]

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