Determining Canadian Investment Returns

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They have announced estimated distributions for the final three quarters of 2003 of $4.29 per unit which includes a special distribution of $.74. So, we take 4.29, subtract the special of .74 and get 3.55. Since this is for three quarters, we divide by three to get the quarterly rate, or 1.1833. We multiply the quarterly rate by four to get the annual rate, or 4.7333. Since this is in Canadian dollars, we multiply by .65 to convert to US dollars, or 3.07. Since the stock is selling for about 19.25 US, we come up with a yield of 15.94% Of course, there is the Canadian tax of 15%, but we get that back as a full credit against US taxes.