Canadian Energy Trusts

I got out of Canadian Energy trusts last and at the first part of this year, as their share prices and the price of oil began to drop. However, now that share prices are down and appear to have stabilized, I thought they might be worth a second look.

Oil is expected to average above $73 in 2010, and with a recovery in the global economy, could go even higher. Which means the Canadian trusts would be in a good position to make money. I've decided to ease my way back in by buying shares of Pengrowth Energy Trust.

Pengrowth (PGH) currently has a dividend yield above 12% on their recent share price of $8.87. Their earnings are currently sufficient to maintain their dividend payout and I expect those earnings to go up. Of course Canada will take their share in taxes, but I do like the idea of another high dividend payer in my portfolio.