[The Financial Blogger]

I'm thinking of putting an income trust such as Pengrowth in my TFSA. The yield is around 12%. What do you think?

Even if the yield is 12%, I would stay away from Pengrowth. A few months ago, they were in a really tough situation and they had to cut down their distributions.

I would aim more towards index funds (ETF's seem too expensive for only $5,000).

 

[The Financial Blogger]

According to Yahoo! Finance (http://finance.yahoo.com/q/hp?s=PG&a=00&b=2&c=1970&d=08&e=2&f=2009&g=v), Pengrowth has never lowered their distributions. In fact, they've always increased, which is a positive sign for them.

This link is for Procter and Gamble... not really close to Pengrowth

According to their site, they cut their distribution at the beginning of the year:
http://www.pengrowth.com/current_year_distributions.aspx

 

[The Financial Blogger]

Not really sure how I mis-typed that! My mistake

no worries, I had my moment of doubts when I read your reply... I was sure that Pengrowth dropped its distribution ;-)