LIVING OFF DIVIDENDS & PASSIVE INCOME

The Canadian Royalty Trusts [or Canroy's for short] sold off big today.[For a great post on Canroys, check out this post on Wealth Building Lessons.] People just dumped them. I lightened my load a little bit too. I sold about 15% of my Canroys and bought gold stocks instead.

I think a lot of it is an over-reaction. Even if the government does raise the taxes 40% some of them are yielding over 15% at these low levels. In the energy sector, between 40-60% of the dividend is termed as return of capital so its tax exempt.

So a 15% yield now becomes a 12.4% yield. Thats not so bad is it? What do you guys think?

Besides, on existing canroys theres a 4 year grace period. Maybe the next Canuck Finance Minister might reverse the decision.

But even then, just to make sure I’m not mistaken for a socialist, The POX on you Mr Flaherty!!!

And just a reminder, the competition at The Weekend Investor ends soon. Register and post for a chance to win a $50 Amazon gift certificate.

• The Deflation Scam The media has been going on and on about deflation. Long-term bond prices have also been trending up and long term yields have been dropping, which means that the market thinks there will be long-term deflation. Even the Consumer Price Index numbers that came out claim that inflation is under......
• When The Market Crashes Now that the market dropped like a sack of potatoes, Cramer has some good advice. (Of course hindsight is 20-20, but still its good advice!)You only have a couple of protections from the whims of a broken system: 1. A company that pays you a dividend that is equal to......
• Are Stocks Better Than Other Investments? There's always someone at a party who's claiming their investment asset of choices is the best. In 1999, it was stocks. In 2005, it was real estate. Right now, I'm claiming its Canadian Income Funds and commodities like gold. But is there an investment that's actually better than something else?......

• Enomther TheOfficial Nexus1 ExpansionPack v1.0 for Nexus One Enomther has released his first Nexus One ROM or expansion pack for the Google Nexus One called  ”TheOfficial Nexus1 ExpansionPack v1.0“. This initial release is described as the Stock OS with Root Goodies. NOTE: This is not a full ROM. You flash this on top of your stock & rooted Nexus1!......
• Preferred Stock Index Funds: The Future for High Yield Dividend Investors? Since Wall Street has thrown us such an unexpected curve ball and subsequently slammed the S&P 500 down ~35% (2008 YTD), most of us are justifiably thinking about readjusting our portfolios, reviewing our asset allocations, or even reducing our 401k / IRA contributions until this financial crisis is resolved. For......
• Why You Need Disability Insurance This article is by Adam from Money Relationship. He recently found a way to keep his sandwiches from getting soggy. I have been thinking a lot about our financial future and where we are headed. When your looking that far ahead though, you're assuming that you are going to continue......

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