To reiterate my reasons for purchase:
- looking to increase exposure to resources in this portfolio
- good way to get paid on the fate of oil with large potential capital appreciation in the future
- distributions (interest income) will become dividends next year and they have large tax pools to offset some tax
- well positioned company in a politically sound country
- I believe oil prices will be strong for the next 20 years, China will be a good customer
- Potential buyers should crop up over the years
- Will add to position from time to time when it looks attractive for the long term
3 comments:
MG,
The problem with COS.UN is that its not tax efficient to hold it in a non registered portfolio. the distributions are not eligible dividends. if you like it buy it in your RRSP/TSFA
i guess that's only until they convert to a corp.
What about Crescent Point? Diversification?
COS cut its dividend so management has demonstrated a culture where this is acceptable. Some companies will do anything to keep their dividend intact.
The oil story will continue to show promise.
COS will be converting to a corp. soon so their pay out will be tax efficient before long. COS dividend policy moves with their earnings and they make that clear. Shareholders are under no illusion of a sustainable dividend; just long term higher oil prices.
I see COS as a long term investment in something that is an unmistakable store of cash flow. Demand for reliable oil supply will only grow in the years to come.
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