Income Trusts

I just finished reading the book, Canadian Income Fundsand found it to be pretty good. The best thing I liked about it was that it did not paint Income Trusts as the be-all-and-end-all investment vehicle. Some authors believe that if they are writing a book about a certain investment type they have to be all positive and subsequently ignore the negatives (and the risks!). This book does a good job of explaining what those risks are, even hinting that income trusts may be near the tail end of a bubble that once interest rates move up in a concrete fashion – look out below. It provides a pretty comprehensive list of all Income Trusts available in Canada and is a good starting point for some research.

If you look at my portfolio, you will see that I own some Income Trusts – mainly my iUnits iREIT index fund. I have found this to be a pretty good income generator providing me with about a 7% income stream on my investment, which I reinvest right back into the fund. I also like it because it is diversified across a number of REITs which I believe limits my risk in the sector. I only wish the folks at iUnits had an oil and gas income trust.

Transactions for the week:
IGM Financial Dividend: $33.44
Reinvest Merck Dividend: $15.25
Reinvest iUnits Canadian Bond Fund Dividend: $19.31
Reinvest iUnits iREIT Fund Dividend: $21.43

Good Book:
As mentioned, Canadian Income Funds is a good primer on Canadian income funds as a source of income for a portion of a portfolio.

• Some Concerns with the S&P/TSX Canadian Dividend Aristocrats
• BMO Monthly Income Fund Analyzed
• Real Estate As An Asset Class
• Added 3 New Canadian Dividend Stocks to My Portfolio
• Canadian REITs 2011 Income Trust Survivors