A Top Canadian Pick
Income and Canada expert Roger Conrad discusses some of the key income opportunities in Canada, and has one income stock he likes the best.
New and old Canadian opportunities. We're here with Roger Conrad, who's going to talk to us about what's happening in Canada and where the opportunities are.
Thanks, Gregg. Well, we just had our 100th issue of Canadian Edge.
Thank you very much. It's a good time to do a little bit of retrospective thought, and I think the good news is, a lot of the trends that carried us through to some pretty good returns in those years are still holding up.
I think Canada still remains a country where the fiscal balance is stronger than the US. It's a currency from where they produce a lot of resources, so that's also well positioned against the US dollar, which is good for US investors.
Most importantly, there are a lot of companies there that are doing well. Now, they can pay big dividends even though they're organized as corporations. Many of the former income trusts, a lot of people thought they would go down the tubes very quickly after they had to start paying taxes, and they've really proven that very wrong. Moreover, they have continued to pay the kind of dividends they paid when they were income trusts.
Right, I think that's ironic. As you were-I was thinking that one of the first issues, that was when the Canadian government came in and said that the income trusts were over. And everybody said that they were doomed, that the yields were never going to be there, the companies were never going to survive.