Wants good U.S. investments

Zoomer | January 1st, 2006

Q – You often reiterate that some portion of our portfolio should be in foreign investments, particularly American. But I am somewhat disillusioned with mutual funds these days, because I feel that too many of them are driven by marketing rather than the markets. Are there any U.S. investments that you could recommend, especially ones that might bring in some income? – L.J., North Vancouver, BC


A – There are many good-quality U.S. stocks that pay dividends, although the yields are generally quite low. Johnson & Johnson is one we have recommended in the Internet Wealth Builder.


Some of the banks have preferred share issues denominated in U.S. dollars that trade on the TSE. The dividends for these are eligible for the dividend tax credit. However, yields are weak here as well because of the low interest rate environment.


Another alternative is to look at an income trust, such as Mulvihill Premium U.S. Fund (FPU.UN), which is set up to generate a regular income stream and has done quite well in meeting its original goals. You can get details fm their web site. – G.P.