Topic: How To Invest

Q: Pat: What do you think about Canoe EIT Income Fund and its dividend payout of around 10%. Many thanks.

Article Excerpt

A: Canoe EIT Income Fund, $12.07, symbol EIT.UN on Toronto (Units outstanding: 89.3 million; Market cap: $1.1 billion; www.canoefinancial.com), changed its name from EnerVest Diversified Income Trust in November 2013. The stock symbol is unchanged. Canoe EIT is a closed-end fund that invests in a portfolio of dividend-paying stocks. Canadian stocks account for 55.1% of its holdings, followed by the U.S. at 37.6%, Switzerland at 4.4%, the Netherlands at 1.7% and Ireland at 1.2%. The fund’s top holdings include Brookfield Asset Management, Canadian Natural Resources, Microsoft, Wells Fargo, Chubb, Johnson & Johnson, Goldcorp, Schlumberger, Bank of Nova Scotia and Anthem Inc. Canoe EIT has 24.6% of its assets in financial stocks and 24.5% in oil and gas firms. Closed-end funds, such as this one, are a lot like conventional, open-end mutual funds. They hold a diversified portfolio of stocks, chosen by a fund manager who gets a fee for his or her services. The key difference is that open-end funds stand ready to sell…