Does this investment belong here?

[BUM]

I've owned this "trust" on and off (mostly off) for more than 10 years. Its always paid a handsome dividend (around 10%). Now that oil prices are going nuts I got thinking about it again. But when I talk about it to anyone the say "Are you crazy?"


Now I'm not suggesting that anyone buy this thing. But could an investment of this ilk be an intelligent part of an ER portfolio?

http://finance.yahoo.com/q?s=MARPS


BUM

 

[unclemick]

Depends - why would you buy it - what purpose does in perform in YOUR porfolio - taxable income booster, counterbalancer to something else, tax deferred for some reason. Put it in context - for someone in the acumulation vs distribution phase.

 

[cute fuzzy bunny]

Looks like its paying a 6.7% dividend, which you can get with more safety and diversity with vanguards high yield bond fund.

 

[BUM]

Thanks unclemick and TH,

Quarterly dividends look attractive but not at 30 bucks/share. I was in at 15 many years ago when it was paying better than 10%....shudda held on to it.

Most of the schekels are on the way to vanguard from local money mkts. . I've been out of the stock market since January. I will need retirement income starting Q3'05. Still cant decide on the allocation.

Bonds are looking better every day.

Some days the view looks great from atop the fence. But its time to make the committment as ER beckons.

BUM

 

[ak4195]

There far better royalty trusts than this one,US based would be SJT,CRT and a handfull of others.Canadian trusts are more dynamic but also come with more risk,sinse they have there own quirks north of the border when it comes to accounting and market rules.I am down to 2 ERF,PGH.ERF is considered the big boy on the block,my basis is so low it would take quite a tumble before i decided to get bothered.The number of canadian trusts is legion,and growing by the week,this is probably not a good thing(well maybe for a while)keep in mind,at $45 WTI crude we are alot closer to the top than the bottom.Google around youll find all sorts of stuff on trusts.One of the main differences between Can/US trusts,is US based are depleting towards ).Whereas Can trusts,while depleting obviously,they constantly have to be on the hunt for acquisitions.Like all things related to energy,the top comes quicker than anybody thought--ak4195

 

[BUM]

CRT seems a bit pricey today....but I'll likely "assume the position".

BUM