LIVING OFF DIVIDENDS & PASSIVE INCOME

I bought some Harvest Energy Trust (HTE) today. Not a lot only 50 shares worth. The market is pretty volatile and historically the month of August is bearish for stocks 72% of the time (or something like that), but the recent 226 point drop in the market created a really good buying opportunity that I found hard to resist.

HTE is a canadian income fund that is taxed like a REIT is in the US. If it distributes a certain amount of its earnings, it doesn’t pay taxes at the corporate level. After trading as low as $27, it bounced back up. I was able to pick up the stock at $29.48. With a monthly distribution of CAN $0.38, that works out to an annual yield of 14.85%! (considering an exchange rate of $0.96 = CAN $1).

Even after you consider a 15% tax, thats a post-tax yield of 12.62%! Pretty hard to match that return. HTE produces heavy oil and also has a refinery. I doubt oil prices will drop substantially or demand will taper off, so I feel the long term prospects are pretty good. In the short term there are always fluctuations in the stock price, but there are good buying opportunities.

• Shanghai Stock Market Finally Corrects About 2 weeks ago, I mentioned that the Shanghai Stock market was likely to correct.Well today is the 3rd straight day that the Shagnhai market has traded down. So far its down 20% from its peak but its still up 28% for the year.The Chinese government thought that the markets......
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• December 2008 Passive & Alternative Income Update I just ran the totals for passive income for December and I found out that it was the 3rd most "profitable" month of 2008.  The other two were October and June. Monthly Passive (alternative, online & dividend) Income was $3,276.07. The total online income was $2385.20 which broke the previous......

• How To Make Money In The Stock Market (And Other Markets) Ladies and gentlemen, I have the secrets to making money in the stock market, and I'm here today to share them with you. The process is very simple, but does require time and effort. You can do this if you follow my simple guide. Step 1: Go to school. You......
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