15 Comments

  1. BeatingTheIndex on March 16, 2011 at 11:25 am

    I hope you kept some money on the side as it seems there will be more “good ones” on sale given all the uncertainty!



  2. Tax Guy on March 16, 2011 at 11:56 am

    So, what is the withholding tax applied to the distributions form this entity? If it’s a true unit trust, the dividends would be reduced by 35%. If it’s a corporation they would be only 15%.

    I normally would not suggest holding something in a TFSA with a 35% withholding tax because it cannot be claimed under the foreign tax credit.



  3. Ravi Gupta on March 17, 2011 at 6:56 am

    Seems very interesting and something I may want to invest in down the road. I recently wrote an article on ethics and investing and there I talk about possibly investing in green stocks. I think it’s a great thing not just for your bottom line but to have ownership in a corporation that does something good for the world.

    Keep on rocking!

    -Ravi G.



  4. My University Money on March 17, 2011 at 1:02 pm

    Hmm… intersting stock. Those are some strong fundamentals! Even if they have to drop that dividend, the solid P/E ratio bodes well for future development. I also agree that the fact they were able to keep their dividend up despite the change in taxation rules bodes well, but I wouldn’t count on it staying that high (even still, say it drops to half in a few years your still sitting on a pretty great dividend). The fact that it is a popular ‘green’ stock is neat cherry on top. Nice pick!



  5. My Own Advisor on March 17, 2011 at 5:15 pm

    Nice pick! That will be some tidy (tax-free) yield for you! 🙂



  6. young on March 17, 2011 at 8:42 pm

    @My Own Advisor- Thanks! Learn only from the very best (yes, you!). I love the idea of tax free yield.. and tax free capital gains (or non-existent capital gains, that is!)



  7. young on March 17, 2011 at 8:44 pm

    @My University Money- Yeah, that’s what attracted me to that company, too. Strong fundamentals and solid P/E, plus fantastic dividend. To be honest, I actually didn’t know that they were so heavily vested in green energy until I did this post, so ya learn something new every day. Makes me like the stock even more 🙂



  8. young on March 17, 2011 at 9:35 pm

    @BeatingTheIndex- Oh i know- hindsight is 20/20! No unfortunately I didn’t keep any money aside to buy stocks on sale, but I did sell some ECA for a nice profit and might use that money to buy more stuff on sale. Or buy ECA again when it dips.



  9. young on March 17, 2011 at 9:39 pm

    @Tax Guy- Hm there are no withholding taxes on this distribution as it’s now a corporation and it’s a Canadian company (Canadian corporation). So it’s actually dividend income that’s paid out. Thanks for your tip about the withholding taxes- they are a bitch! I am trying to keep all my dividend paying US stocks in my RRSP.



  10. MoneyCone on March 18, 2011 at 5:59 am

    Good advice to load up on stocks now that the markets are down! I did the same with my IRA (similar to your tfsa)!



  11. Eddie Mah on March 18, 2011 at 12:57 pm

    sure hope this pick makes ya some $$.. $JE used to be Alberta energy Savings…like Direct Energy… they sell natural gas contracts door to door in Edmonton as I recall… doing some DD on the stock and found stuff you may want to see…www.edmontonsun.com/news/…16911.html

    and www.esksfans.com/forum…these-guys

    but 8% yield is pretty damn good! Try $DH and $ERF if you like high yield stuff!



  12. @crazyfasteddy on March 18, 2011 at 1:17 pm

    here’s another…www.keyframe5.com/just-…s-company/

    don’t agree with their practices but if its making ya cash in your TFSA whatever right? heck I bought tons of oil during Katrina…



  13. young on March 20, 2011 at 8:12 pm

    @crazyfasteddy- whoops so much for them being “green” and ethical. 🙁 Yeah, I personally wouldn’t use a business product that is framed in that way (e.g. contract with utility agent) but I’m happy with the dividends. They are obviously profiting quite well from those contracts, unfortunately for customers but fortunately for shareholders.



  14. young on March 20, 2011 at 8:12 pm

    @Eddie Mah- I have DH as well too. Nice and stable and boring (just the way I like it)- they make the cheque books that everyone has 🙂 Haven’t heard of ERF but I’ll look into it.



  15. young on March 20, 2011 at 8:27 pm

    @MoneyCone- Yeah, they’ve been very ‘roller coaster’ like these days, eh? Glad to hear you took advantage of it and had good timing!



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