Looking to buy some shares. Wondering what my fellow Turdites think of this one.
MMP.UN - Precious Metals and Mining Trust
Keep in mind that none of the holdings in the trust actually pay a dividend, so when you receive a monthly "dividend" you are really just getting back part of your own capital. I would expect the payouts to fluctuate up and down with the gains or losses in the fund. In other words, don't count on that payout.
Beyond that, I don't really see a problem with the trust or it's holdings. I'd expect it to perform similarly to the GDXJ here in the States. (no idea if GDXJ trades in Canada)
I have held GGN for a little while, and I recently added to my position when the share price dropped. Similar to MMP, it has paid out consistently for years at $0.14/month (which on Friday worked out to 12% annually) for many years.
I'm glad you posted this, I'm considering getting in as this would provide return as well as some Canadian dollar exposure.
The volume is a bit low, but it's not zero.
I worked this for a while, and I think I finally found a way to trade this from a US account. MMP-UN.TO gets you the info in Yahoo Finance:
I cannot find that in my Scottrade account. But I searched and searched, and found PMMTF.PK:
I believe, though I cannot prove, that this is the same company, listed as a pink sheet in the US. Scottrade does carry this one, and when you compare the two you get a very close correlation:
And the dividend listed in Scottrade matches.
I think the differences are due to currency exchange rate differences plus the extremely low volume of PMMTF.PK. I bought 500 shares, and I used the MMP-UN.TO quotes to frame my limits. The quoted value for PMMTF.PK was from several days before (no trades for a couple days), but the limit hit when the MPP-UN.TO dropped down to my limit.
Long story. But I got it at $7.14 USD, and the ex-div date is Tuesday, payout scheduled for June 15, and Scottrade shows a 16% annualized dividend at the current price of $7.24. If it proves out I may add a little more, it makes a nice complement to GGN. $0.10/month for PMMTF.PK, $0.14/month for GGN, nice little revenue stream with a small price upside on increasing metals value.
Thanks again for pointing it out, esentrik.