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I’ll buy a great bargain stock in 5 minutes: Advantage Energy Income Fund AAV, a natural gas company which yields 12.4% dividends April 7, 2008

Posted by deminvest in AAV, Advantage Energy Income Fund, stocks that pay high dividends.
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Canadia Gas Drilling

Thanks to Patient Investing Blog for discovering this hidden Canadian gem:

  • It is a natural gas and oil company. Which such high price of those commodities, it will do good
  • it is actually doing good: Quarterly Revenue Growth (yoy):35.00%. Quarterly Earnings Growth (yoy):57.90%
  • it offers amazing dividends: Trailing Annual Dividend Yield:14.40%

I have no clue how those Canadian companies can sometimes be so under-priced. They are actually Income

funds, owning operating companies. Last year I got excellent dividends, and a 40% return on stock-price, from a similar  Canadian gem:  FDC Fording Canadian Coal. FDG also had dividend and growth rate similar to AAV. I couldn’t understand why it was so under-priced. There wasn’t actually any reason so it went up 40% in two years, paying me 11% dividends meanwhile.

What worked with FDC may also work with AAV.

Hopefully, I’ll be able to thank Patient investor even more very soon🙂

Comments»

1. deminvest - April 7, 2008

I just bought Bought 80 AAV at $11.43 each. I spent a total of $914.40

2. Kevin - April 7, 2008

If you like oil companies with high dividend yields then you should look into EVEP as well. It is an American company that is in oil and gas exploration. They own some good properties and give a 10% dividend yield. I own a few shares myself.

3. deminvest - April 7, 2008

EVEP is very interesting too. They are even rising their dividends and this quarter’s losses seem a one time event.
I’ll look at EVEP carefully for May’s monthly investment.

4. International Shipping - April 9, 2008

12.4% dividends?? How long have they been paying like that??

5. deminvest - April 10, 2008

They have been paying this kind of dividend at least since 2004:

http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1207816193473&chddm=493051&q=NYSE:AAV&

I can’t find informations before 2004, but I expect they were paying similar dividends in previous years too.

What is also very nice is the fact that they pay on a monthly base, on the 27th of each month.

6. dom - April 18, 2008

What a bad investment!!!!

So AAV loses 6 cents a share but pays out $1.42 a share?
EVEP takes in 74 cents and pays out $2.40 a share?

Lets think this out. Even if you have cash in your bank account, how smart is it to spend much more than what you take in? How long will you last before you claim bankruptcy?

If it is too good to be true then it is.

7. deminvest - April 20, 2008

dom, AAV is growing its revenue 35% y.o. If they pay so much dividend, it means the probably expect to continue growing next year. I believe they may really do because of higher gas prices.

If I’m wrong they will reduce their dividends, which is bad but not as bad as going bankrupcy.

If I’m right, I’ll get my dividends and stockprice will also skyrocket.

We will see.

Btw: you’re right, when something is “too good to be truth” it usually simply isn’t truth🙂

We will see…

8. Help! They are putting advertising on my Blog! « Democratic Investments by the people for the people - May 6, 2008

[…] Here is a post. You’ll find advertising for the same funds I hate on the end. […]

9. deminvest - April 14, 2010

Dom was 100% Right!

AAV stopped paying any dividend within a year and is now worth
AAV is now at $7.14. I’m more than 30% underwater on this stock.


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