Canoe EIT Income Fund offers a 10.84% dividend yield

Sep 21st, 2016 – 1 Comment

Looks to have more gas in the tank


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Hello…wondering if you could give me your thoughts on eit.un-t….

Thanks,

Dave

 

Hey Dave,

Thanks for the assignment. Canoe EIT Income Fund ( EIT.UN TSX), formerly EnerVest Diversified Income Fund, offers a 10.84% dividend yield from the $1.207 billion in assets under administration. The fund has 29.1% invested in the financial sector, 17.6% in energy, 10.1% in technology, and 8.9% allocated to industrials. These four areas make up more than half of the invested capital. The remaining assets are spread across multiple industries.

The geographic picture for the fund indicates that Canadian equities represent 55.3% of the total and U.S. equities another 34.8%. The rest is invested internationally.

 

 

 

EIT.UN

The three-year chart tells the tale of a fund that has enjoyed a fabulous 2016. EIT.UN  has broken above the downtrend line that started in May of 2015. The units were trading near $10.80 where they met resistance and pulled back all the way  to the January 2016 lows. The advance that started at the beginning of the year now has the shares operating with the support of a golden cross that formed in May.

The momentum indicators generated buy signals in January as the stock became oversold.

 

 

 

 

 

 

 

 

EIT.UN2

The six-month chart depicts the resistance that has come in near $11.05 over the last number of weeks. Currently the MACD and the RSI are indicating that EIT.UN is about to start another leg up.

Needless to say I’m attracted to the yield and with the new uptrend line in place and the momentum indicators going in the right direction I would say that we can expect the advance to continue for the time being. But keep in mind that trees don’t grow to the sky.

Next time I will examine an insurance issue for Josie.

 

Make it a profitable day and happy capitalism!

Categories: Income Investing
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