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I thought I would find out what some of you thought of holding some of the income trusts within your TFSA, more specifically the ones that throw off a distribution rather than a dividend.

I know that some of you are near retirement and are looking for income, which would be provided via the TFSA sheltering the higher yielding income trusts.

However, I am also aware that some of you are not keen on investing in any company that gives a distribution, rather than a dividend, as it is looked on as essentially a re-allocation of invested funds.

(not including those who don't really like to see a dividend payout, and would rather see the funds reinvested within the company)

Any opinions out there?
 

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I'm in favour of the idea. This year I'm sticking New Flyer in my TFSA. It's a bit different than some trusts as it's a "stapled security" -- approx 2/3 of the distribution is interest, and 1/3 is a dividend. I'm mainly looking to shelter the interest income.
 

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I am looking at LIQ.UN for my TFSA. I really dont think it matters whether it is a dividend or a distribution so long as the stock pays!

Biggest risk is what happens to the Trust's when they have to incorporate in 2011? If they cut their distribution, as I am sure many will, the stock prices will take a hit which could wipe out any capital gains.
 

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EIF is a high yield company and is in aviation/manufacturing so it offers nice diversification from other income trusts (energy/retail/Real Estate etc). What I like most is that it has already transitioned nicely to a corporation and is no longer an income trust with an unknown future in 2011. I am hoping the price dips so I can transfer a larger amount of units into my TFSA with no fees in 2010. However my gut tells me it is going to hover closer to $15-16 this year.
 

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EIF is a high yield company and is in aviation/manufacturing so it offers nice diversification from other income trusts (energy/retail/Real Estate etc). What I like most is that it has already transitioned nicely to a corporation and is no longer an income trust with an unknown future in 2011. I am hoping the price dips so I can transfer a larger amount of units into my TFSA with no fees in 2010. However my gut tells me it is going to hover closer to $15-16 this year.
My gut was right, it hit $15 today and has been climbing. New prediction is $18 by end of the year.
 

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I have...
YLO.UN - looked like value to me
BNP.UN
CHL.UN - speaking of aviation...

They are all up but pretty volatile. And I too notice that the CHL.UN has really low correlation to the rest of the market.
 
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