As some of you may remember, my wife and I nailed down a plan to deal with our current budget problems. Well, as part of our plan, we decided to purchase shares in high yielding stocks to supplement our monthly incomes.
Now that things have settled down after the holidays, we sat down and selected three stocks:
1) Frontline Ltd. (FRO). Frontline is a tanker company owned by a Norwegian millionaire. The company’s share price has been flat over the past couple of years, but its dividend payments have been consistently been great. We took a position (about 180 shares) and intend to hold until James’ graduation from the U of Maryland.
2) BP Prudhoe Bay Royalty Trust (BPT). Prudhoe Bay Royalty Trust is company that provides royalties from oil pumped out of Alaska’s Prudhoe Bay field to its shareholders. Its share price has done well over the past few years, and more importantly it has an almost 9 percent yield. Our holding period is approximately the same as for FRO.
3) Advantage Energy Fund (AAV). AAV is a gem. The company is organized as an unincorporated mutual fund trust in Canada. While there have been some tax issues with Canroys, and the dividend in this fund has been cut, the dividend payout ratio is still 18%. We took a larger position in this issue, buying approximately 1750 fund units. We’ll see how it works out, but the siren call of monthly dividends seems, at least for AAV, currently hard to resist.
Hope you enjoyed reading! As always, we welcome comments or feedback!
Best,
James & Miel
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