I’ve always been a big fan of high yield stocks.  In particular stocks that are solid enough to throw into a retirement portfolio and forget about for a few weeks.  Afterall, as long as the yield stays the same, you’re not worried about the day to day fluctuations of the price.

In looking through a list of high yield stocks, an old addage comes to mind: “If it’s too good to be true…”  well, you know the rest.

When looking for a high yield stock, you’re looking for good fundamentals in the company iteself, but also a stable dividend history.  When looking at many Canadian Royalty trusts, you want to make sure the pay out ratio (POR) is not sky high, meaning they return a high percentage of their earnings to the shareholders, rather than reinvest it into their company.

I’ve found a few good options, namely Provident Energy Trust (PVX: chart) and Cornerstone Strategic Value Fund (CLM: chart).  Both have paid a consistent dividend yield for a number of years, and have also done well in terms of price appreciation, although CLM has remained relatively flat until recently.

One drawback of the Canadian Royalty Trusts such as PVX is that you pay a Candadian foreign tax on your dividends.

Thanks to “frugal” at My1stMillionat33 for his list of high yield stocks that are more attractive than the typical 5% offered by most “traditional stocks” like Pfizer (PFE: chart) which pays 4.1%.

The best part about some of these high yield stocks is that they pay a monthly dividend, and it doesn’t take a math major to know that compounded 12 times a year is much better than 4 times a year.

I’ll research some of the stocks that frugal has listed in his table, and post my thoughts on them as I pick through them.

Additional Information
Canadian Royalty Trust Intelligence Forum
More Canadian Royalty Trust Information

Disclosure: I own PVX and CLM

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