Stock Talk – July, 2016

Stock Talk

Guest User

Guest User

What do you guys think of oil and gas trusts at this point in time? It seems that alot of them may have hit their lows, both in share price a dividends, and perhaps ready for a rebound in both share price and dividend with oil and gas prices coming off of their lows. Many of these have slashed or cut entirely their dividend but those are likely to return and rise sharply (some already have) – it seems by buying now, you’d be locking in a nice dividend yield on one’s initial purchase as those dividends return and rise.

Igor Greenwald

Igor Greenwald

The problem is they’re a wasting asset, so current yields predict little. I continue to recommend staying away from any and all of these. These were highly promotional structures to begin with, they’re not less dangerous now given the low oil prices and you will not do well unless you get lucky.

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