Rob Carrick, personal finance columnist for The Globe and Mail hunts for bargains in the red-hot income trust sector. He mentions five names:
- Acclaim Energy Trust (TSX: AE.un)
- Chemtrade Logistics Income Fund (TSX: CHE.un)
- Clean Power Income Fund (TSX: CLE.un)
- Royal Host REIT (TSX: RYL.un)
- Viking Energy Royalty Trust (TSX: VKR.un)
With the exception of Royal Host (which yields around 6%), the other income trusts yield between 11-13%. In my opinion, these high yields are indicative of the risks involved in these securities. At a time when most investors are chasing income investments, large-cap growth equities seem to offer the best value.
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