LIVING OFF DIVIDENDS & PASSIVE INCOME

Bought some stock in Pengrowth Energy Trust[PGH] today. Its a Canadian stock that pays out a strong 11.60% annual dividend on a monthly basis. The ex-dividend date is August 29th so I thought I’d get in before the cut-off date.

Since I think the US dollar is headed down in the long run, this is a good hedge against it while also getting a great dividend. There are a lot of canadian stocks that give out a good dividend. They’re kind of like REITS in the US. If they promise to pay out most of their profits as dividends, they aren’t subject to double taxation. They sometimes have the words “income fund” or “income trust” in their name.

Now, if I only had a million bucks, I’d be able to live off the dividends!

• Good News For Canroys? I'm a big fan of Canadian Royalty Trusts, also called Canadian Income Trusts or Canroys. But lately, they have been under a lot of selling pressure. Coupled with the sell-off in global equities is the overhanging tax change that the Canadian government implemented last year. According to the change, canroys......
• Top 10 Reasons Why You're Not Rich Thestreet.com has a good article on Why you're not rich.Here's the summary:You Care What Your Neighbors ThinkYou Aren't PatientYou Have Bad HabitsYou Have No GoalsYou Haven't PreparedYou Try to Make a Quick BuckYou Rely on Others to Take Care of Your MoneyYou Invest in Things You Don't UnderstandYou're Financially AfraidYou......
• Tax Arbitrage Merck has been sued by the IRS for $2.3 Billion for back taxes and penalties. It set up a company in Bermuda which owns its patents and then its pays that company royalties.It took advantage of what is often called "tax arbitrage." The usual strategy: lower a company's tax bills......

• North Americas #1 Ranked Fund Manager Names His Favorites StockInterview: How do you feel about uranium, which fuels nuclear reactors and generates electricity, and the uranium bull market for stocks that were in right now?J-F Tardif: We are very bullish. Were extremely bullish on uranium as a firm, not only for uranium, but were also very bullish on......
• Hey, where did those 4 cents come from? I logged into my Sharebuilder account to get my latest balance, and noticed that there were 4 little cents hanging out in the money market fund there. I wondered where those came from, since all of my money should have been invested in various stocks already. Or so I thought.......
• Investing in Canada's Real Estate Market With the Bank of Canada holding interest rates at 0.25%, some are saying that Canada's housing market is overheating.  Housing starts are up 21% over 2008 and building permits are up 18% (which are forward-projections). At the very least, it is a sign of the strength of the Canadian housing......

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