From 2000 to 2006, Canadian royalty trusts ("Canroys") were all the rage. Canroys offered high yields although this yield was reduced by the 15% foreign tax withholding.
But on October 31, 2006, and commencing in 2011, trusts would be taxed like all other corporations, at the full 31.5% rate!
Approximately 90% of Canadian Royalty Trusts have either converted to corporations, merged with other companies or simply liquidated.Their share prices have been cut in half. So now is a great time to re-look at the survivors. In particlar PGH.
I sold 3 puts at $5 and if I get the stock put to me, I earn about $12 every month. I don't see the stock trending lower, and my price target is $7.