RE: RE: RE: RE: RE: 7% Dividend yieldRoyalPumper...EP.UN popped up 5.48% today!! still not a bad entry point - and it still pays almost 21% per year. Some people fear a distribution cut ( 21% to say 10% is still very good - if it even happens!) - both RBC and the company say NO cut...but who cares... get the return for as long as you can.
And I agree with you... I don't see the Canadian Banks cutting their Dividends - but this roller coaster ride isn't over ...At no time in history ...never ever ...has there been as much government manipulation in the markets ...and the reality is they are putting lipstick on a really ugly pig. The market PE ratio's now... are way, way out of wack for the earnings going forward.
Markets... not governments will decide what's what...The Americans are hoping to manage the dump and who knows maybe they'll get lucky. There is still 600 Trillion in world wide debt and derivatives that needs to be trimmed...that's a really big gulp to try and digest in a few years.
If you want to keep your BMO ( And I am NOT saying you shouldn't ) or what ever Canadian BANK you own...just protect yourself with a hedge position. Buy some cheap PUTS just out of, or in the money... 3 + months out for example... you could buy the BMO JUly 40.00 PUT (Bid 1.98 - Ask 2.17).
So for about 2.00 you have bought some insurance. OR the BMO OCT 40.00 PUT (Bid 3.50 - 3.75) costs a bit more for the time value but a bit safer play... maybe.
Just my opinions...take them or leave them.
Cheers