Nothing has been spared from volatility in this extremely fear-drenched market. The biggest risk, however, isn’t the Four Horsemen that are stirring so many emotions–the historic oil spill in the Gulf of Mexico, the unfolding sovereign debt crisis, the threat of higher investment taxes and the risk of a double-dip recession.

Rather, it’s the kind of poor decisions panic induces. You don’t have to go back far to see the damage done to portfolios by capitulation, whipsaws from stops that are set too tight or viewing investments in two dimensional terms (safe or risky). Examples abound from the 2008-09 period.

In fact, the greatest tragedy of the recent bear market is not how far the markets fell from the fall of Lehman Brothers in September to the bottom in March 2009. It’s how many investors sold at or near the bottom and then failed to capitalize on one of the greatest rallies in history–simply because emotion wouldn’t let them.

There are very real reasons to be on your guard these days, starting with the Four Horsemen highlighted above and in In Brief column. But as the 2008-09 crisis taught us, all high-yield investors really need to be concerned about is the underlying health of the businesses paying their dividends. As long as these are solid, dividends will continue to be paid and any damage to share prices will eventually be repaired. You don’t have to correctly forecast the macroeconomic events even the experts get wrong. All you really have to do to weather the crisis is to be sure of the health of the companies you own.

Skeptical? Consider this. Starting from the market peak in mid-2007, the S&P/Toronto Stock Exchange Income Trust Index has returned 14.5 percent. In stark contrast, the S&P/Toronto Stock Exchange Composite Index has shed a little less than 2 percent over that same period, while the S&P 500 is off 13 percent.

Remarkably, this was a period during which Canadian income trusts languished under the cloud of 2011 taxation as well as restrictions on how much equity capital they could issue. And it included an historic crash in energy prices and the worst credit crunch since the 1930s.

How did the trusts outperform so convincingly? It all boils down to dividends. While no- and low-dividend stocks were gyrating wildly, trusts continued to steadily pay investors annual yields of 8, 9, 10 percent and more.

Current income continued to build wealth in the worst of times, and when the environment inevitably improved those yields provided a valuation basis that’s ensured big share price gains.

As more and more trusts announce plans to convert to corporations, it’s clear that the group is going to retain its big yield advantage. Not all of the converters have been able to hold their distributions wholly intact. But even those who have cut are sticking to the dividend payout model as their market niche. And the yields they offer are still the highest in the world.

That high-yield advantage is the best possible assurance our picks are going to weather whatever the market throws at them in spring and summer of 2010. As long as they post the earnings numbers to back up those dividends, they’ll bounce back from any short-term damage they suffer now. Meanwhile, they’ll keep building wealth with big cash flows.

No one likes a selloff. But what we’re seeing now is positive in one very real way: It’s an opportunity for those who want to invest more, including newcomers, to build positions in high-quality companies at what are turning out to be bargain prices.

My favorite way to add new positions is simply to buy the High Yield of the Month picks. This issue they’re power/gas infrastructure play AltaGas Income Trust (TSX: ALA-U, OTC: ATGFF) and food and related products distributor Colabor Group (TSX: GCL, OTC: COLFF).

Colabor has already converted to a corporation and pays a quarterly yield of a little over 9 percent. AltaGas has announced its conversion plans and yields about 8 percent based on its future dividend plans. Both have posted solid first-quarter earnings that support strong balance sheets and dividend coverage. They’re ideal additions for even the most conservative yield seeker in these dangerous times.

Another strategy is to buy a mix of Portfolio picks, based on your appetite for risk. Those who want to bet on growth and commodity prices will want to focus more on the Aggressive Holdings highlighted below. Those who just want safe, high income without such risks should focus on the Conservative Holdings.

My two recommended funds offer a mix of the two styles, along with professional management and a broadly diversified mix of holdings. Blue Ribbon Income Fund (TSX: RBN-U, OTC: BLUBF) pays a monthly yield of around 9 percent and has moved beyond 2011 with its top 10 holdings all converted corporations. EnerVest Diversified Income Trust (TSX: EIT-U, OTC: ENDTF) also pays monthly and yields around 9 percent. None of its top 10 holdings have energy price exposure.

In general, I believe that investors will do better picking their own stocks than buying funds. But for those who want to let someone else do the picking, these are my favorites. And both also trade at sizeable discounts to the value of their assets as well, EnerVest 15 percent and Blue Ribbon 7 percent. Buy Blue Ribbon Income Fund up to USD10, EnerVest Diversified Income Trust to USD13.

How can we be sure these companies will stand up to another panic? Unfortunately, the only way is to keep looking at the business numbers every quarter as they appear.

The good news is all of these have reported, and the numbers indicate nothing but strength. Two years ago they stood up to the collapse of the US banking system. These results indicate they’re stronger than ever this time around–and therefore even more likely to keep paying dividends come what may–ensuring their recovery from whatever happens now.

Here’s the roundup of these companies, starting with the Conservative Holdings. Again, my advice is simply to buy below my stated targets, which are the highest price at which I believe there’s value.

Don’t overload on any one holding no matter how good it looks. Rather, try to build a balanced mix of holdings, based on what you’re comfortable with. Again, by clicking on the US symbols in How They Rate you can read everything I’ve written in the past on these companies, which is quite a lot.

Conservative

Bell Aliant Regional Communication Income Fund’s (TSX: BA-U, OTC: BLIAF) post-conversion dividend policy has earned its BBB rating an upgrade to a stable credit outlook from S&P. The provider of rural phone service in Eastern Canada will lower its dividend by roughly 34 percent when it converts in late 2010/early 2011, using the saved funds to further cut debt and complete and ambitious fiber optic cable build-out.

The cut was a bit steeper than I anticipated. On the other hand, the initial quarterly payout rate of 47.5 cents Canadian per share (staring with the March 2011 payment) still provides a yield of around 7.5 percent. And there’s potential for increases as well, as debt leverage is brought down and the fiber rollout is completed.

Like all rural wireline phone service providers, Bell Aliant faces a long-term challenge of customers migrating to what are now more powerful cable and wireless networks.

To date the company has held annual line losses to mid-single digit percentages–6 percent the past 12 months–in stark contrast to double-digit losses suffered by traditional phone companies in many parts of the US.

It’s also been able to offset these losses by signing up more customers to broadband Internet and entertainment services.

The fiber build-out should dramatically accelerate this avenue for growth, giving the company the most advanced network potentially everywhere it operates. Current plans call for investing CAD65 million this year to reach 140,000 homes and businesses with fiber to the premises.

After conversion, the company will up that to CAD350 million for the next two years, adding up to a cost of CAD550 to CAD580 per home, right in line with prior management projections.

First-quarter revenue fell 4.9 percent on the declining traditional business. Cost-cutting and efficiencies, however, boosted cash flow margins by 1.6 percentage points, holding overall cash flow relatively flat. Internet customer rolls grew by 6.5 percent, and revenue per customer surged 5.5 percent. That added up to a 1.9 percent up-tick in distributable cash flow, which again covered distributions by more than 2-to1.

The new dividend rate equates to about 75 to 85 percent of free cash flow, freeing up money for network investment. Ultimately, that’s likely to be an investment that shareholders will like a lot, despite the near-term pain. Buy Bell Aliant Regional Communications Income Fund for high income and growth up to USD28.

CML Healthcare Income Fund (TSX: CLC-U, OTC: CMHIF) had few surprises in its first-quarter earnings release. Overall revenue remained under pressure, largely from weakness in the US market that offset an increase in rates in Canada. Cash flow slipped 8.6 percent, and net earnings fell 9.1 percent from year-earlier levels.

Compared to the negative surprises of last quarter, however, this report was positively stable. Distributable cash, for example, slipped only 3.2 percent, and the payout ratio came in at 87.3 percent, right in line with last year’s 84.6 percent. Moreover, a great deal of the shortfall was likely due to the record snowfall in Maryland and Delaware, which triggered temporary closures of US medical imaging centers and referring physicians’ offices. That’s a factor not likely to be repeated next year.

Most important, management problems at the US operations–the primary reason for last quarter’s shortfalls–showed real signs of improvement. The company has successfully tested its RIS/PACS system and intends to deploy it in the next couple months. Meanwhile, growth at facilities acquired in 2009 in the US Northeast has returned to management projections.

If there’s a negative in CML’s results it’s CEO Paul Bristow’s statement that the company is still “working with our professional advisors on…finalizing the post conversion dividend policy…by the end of the third quarter.” The good news is the trust intends to maintain the current distribution at least until the end of 2010. Moreover, the time it’s taking to make this decision is a good sign the company will keep its dividend-paying model and as much of its current payout as is prudent.

I’ve cited CML as a potential beneficiary of the Obama administration’s health care legislation, which is projected to increase insurance rolls in the US by some 30 million to 40 million. Theoretically, those customers could come to CML’s imaging centers. There’s still a lot of ground to be covered here, but it looks like all potential upside. Meanwhile, there’s no steadier and higher-yielding health care play. Buy CML Healthcare Income Fund, which currently yields around 10 percent, if you haven’t yet up to USD13.

Davis + Henderson Income Fund (TSX: DHF-U, OTC: DHIFF) turned in another extremely robust set of numbers in its first quarter. The provider of paper and Internet forms for Canada’s rock-solid banking industry saw its revenue soar 78.9 percent, cash flow rise 31.7 percent and adjusted net income turn up 28.5 percent as it continued to successfully absorb its recent acquisitions.

Distributable cash flow per share ticked up 6.1 percent, bringing down the trust’s payout ratio to 83 percent; on a per-unit basis it was up more than 9 percent versus fourth-quarter tallies.

The company plans to reduce its distribution by a little more than a third when it converts to a corporation in 2011. That’s a very conservative rate, and it opens the door to more dividend growth once the conversion is made.

Meanwhile, this company should continue to grow rapidly as it integrates older acquisitions and makes new ones. Rising interest rates could pose a worry if they unexpectedly slow the Canadian economy, loan activity in particular.

Davis and the banking system that is its customer base, however, weathered the 2008 crisis well. And after more than a year of further deleveraging, the company’s in better shape than ever to do so again. Buy Davis + Henderson Income Fund up to USD17–where it yields more than 7 percent–if you haven’t already. 

IBI Income Fund (TSX: IBG-U, OTC: IBIBF) turned in a solid first quarter. Numbers were mostly lower compared to first quarter 2009. But factoring in a shorter reporting period, distributable cash flow rose CAD2.8 million, while net income ticked up CAD4.5 million. The company also set the stage for future growth as a team led by SNC Lavalin and featuring its architects won a major contract to build a medical center in Quebec.

Public sector work exceeded 65 percent of revenue, as the company continued to find government contracts to replace still flagging private sector business. The acquisition of a water services company promises to add business particularly in the Caribbean. And management remains committed to building up operations in the US, where markets are currently weak but ripe for more acquisitions. Overall backlog is now two-thirds public sector work.

IBI still has not announced its plans for dealing with 2011 taxation. On the plus side, its growing presence outside Canada means an expanding percentage of income is exempt from new levies. On the minus side, however, the company is currently paying out more than it’s earning, with the shorter period payout ratio coming in at 113 percent. That and the 11 percent yield suggest management will be making at least some cut in the coming months.

Much likely depends on how fast the US operations start to boost profits, which, in turn, will be highly affected by the pace of economic growth. At this point, however, IBI looks like solid value selling for 65 percent of growing sales. Buy IBI Income Fund up to USD17 if you don’t already have a position.

Pembina Pipeline Income Fund (TSX: PIF-U, OTC: PMBIF) enjoyed solid results at each of its three business lines. Conventional pipelines saw some decline in throughput, largely due to an asset disposal. Division earnings, however, turned up sharply on a substantial decline in costs. Overall operating expenses fell 13.2 percent during the quarter.

The company’s Midstream & Marketing division, which mostly leverages the conventional pipeline assets, boosted its operating income by more than 20 percent. Finally, the oil sands transport division–which is the exclusive midstream company for the Syncrude venture as well as a major service provider for Canadian Natural Resources (TSX: CNQ, NYSE: CNQ)–posted flat operating income as it continues to build the Mitsue and Nipisi system. Revenue from these assets is mainly capacity-based, meaning the company earns the same amount of cash no matter how much energy is transported.

Pembina management has stated for some months that it intends to hold the trust’s current dividend level at least through 2013 when it converts to a corporation. That begs the question, What about after that? But this is the same kind of guidance given by Atlantic Power Corp (TSX: ATP, OTC: ATLIF).

The most important thing about Pembina is its growing base of solid midstream assets that are in all the right places in Canada’s energy patch. The more Syncrude grows, for example, the more it will, though without the energy price risks. The monthly distribution is attractive between 8.5 and 9 percent. Buy Pembina Pipeline Income Fund up to USD18.

RioCan REIT’s (TSX: REI-U, OTC: RIOCF) first-quarter payout ratio decline to 96 percent from well over 100 in prior quarters was welcome news indeed. More important, it’s clear vindication of management’s conservative strategy of raising capital at very low rates last year and then sitting on it until real buying opportunities arose despite a distributable cash flow shortfall.

First-quarter net operating income surged 17 percent from year earlier levels and 11 percent from the fourth quarter, as the REIT continued to absorb new properties acquired at bargain prices. And RioCan still has CAD106 million cash on hand as well as debt-to-gross book value of just 56.8 percent, leaving the door open for further purchases.

Occupancy remains strong at 97 percent, and rents continue to rise from the REIT’s blue-chip client base, which anchors all of its centers. The company has also started construction at a new retail center south of Calgary, Alberta, and has other build projects in the province as well as its largest market Ontario.

It also has ownership interest in 12 greenfield development projects with a total of 8.5 million square feet and continues to expand development efforts with Wal-Mart (NYSE: WMT), which currently accounts for 4.3 percent of overall revenue.

If the Canadian economy continues to recover and grow, RioCan’s cash flows should mushroom in coming quarters. If not, the high quality and low leverage of its properties promise to keep things steady until conditions improve. Either way, RioCan–a top-notch REIT yielding more than 7 percent–is a buy up to USD20.

TransForce (TSX: TFI, OTF: TFIFF) may not currently attract many investors on the basis of yield. But the company’s ability to keep growing its trucking enterprise over the past several years should impress even the casual observer. And if first-quarter numbers are any indication, it’s headed for its best year in many.

Management tried to dampen expectations a bit when it projected that a real recovery in shipping volumes is still some months away. But recovering volumes in the automotive and energy sectors were certainly welcome after so many months of slumping. Revenue rose 3 percent, 2 percent excluding fuel charges, thanks in large part to the acquisition of ATS Andlauer. Adjusted earnings per share–excluding a one-time gain–were 11 cents, versus Street forecasts of just six cents. That took the payout ratio down to just 36 percent.

Impressively, TransForce’s performance came in what’s traditionally its seasonally weakest quarter. As has been the case since the recession began, the key was cost controls and dramatic debt reduction that management is continuing. For example, the company plans to cut debt by another CAD100 million in 2010 after slashing it more than CAD100 million last year. Cash flow margins, meanwhile, rose to 10.9 percent from the prior year’s 9.9 percent.

That’s pretty good reason to expect this company can withstand whatever happens in 2010. And if the economy does continue to bounce back, I look for a return to the old highs in the upper teens. The upshot: I’m raising my buy target on TransForce for those who don’t already own it up to USD11.

Yellow Pages Income Fund (TSX: YLO-U, OTC: YLWPF) has faced an unusual burden of proof from investors for several years now. Basically, it’s had to show every quarter why it wasn’t destined to follow the fate of bankrupt US print directory companies and how it could pay its dividend amid a recession and rising competitive pressures.

Unfortunately the company hasn’t always succeeded recently, and its share price is now well below its level of a couple years ago. The good news, however, is first-quarter earnings paint a picture of a strong recovery in progress, which is starting to be reflected in the share price as well.

Overall revenue was basically flat with year-earlier numbers, as advertising continued to be hurt by the recession. Internet revenue, however, continued to surge at a 20 percent pace, hitting a new high of nearly CAD400 million on an annualized basis. That’s a stark contrast with the US directory businesses, which were all late in coming to the Internet. So is the fact that Yellow remains an acquirer of other directory businesses, locking away Canwest last month. And so is Yellow’ partnering with web giant Google (NSDQ: GOOG) rather than losing business to it.

In the words of Executive VP Christian Paupe during the company’s most recent conference call, “cyclical pressures appear to be abating (and) revenue trends are showing promise.” Cash flow at the troubled Trader publications was actually up 15 percent from year-earlier levels. The conversion to a corporation is now set for November 1, with a new dividend rate of CAD0.65 a share. That’s a yield of well over 10 percent based on Yellow’s current price and it will be covered with post-tax cash flow by more than a 2-to-1 margin. Buy Yellow Pages Income Fund up to USD8 if you haven’t yet.

Aggressive

ARC Energy Trust (TSX: AET-U, OTC: AETUF) posted a strong 16.7 percent jump in cash flow per unit on the back of higher realized selling prices and a 3.7 percent increase in output. The results were a welcome change from quarterly comparisons since mid-2008, which, like virtually all energy producer trusts’, suffered from lower energy prices.

The payout ratio fell to just 47 percent, lending a great deal of credence to management statements that its post conversion dividend policy would be “similar” to its policy as a trust. The company also made great progress cutting costs, trimming operating expense per barrel of oil equivalent produced by more than 8 percent over last year’s levels. Cost reduction should continue to advance as ARC exploits more lower-cost reserves in shale areas.

The company’s capital spending program is projected to hit a record of CAD610 million this year, with CAD128.3 million spent in the first quarter. Some 80 percent of those expenditures were financed by internally generated funds with the balance by the company’s dividend reinvestment plan, allowing the company to reduce its net debt to CAD677.8 million from a year-end balance of CAD902.4 million. That, in turn, has brought debt-to-cash flow down to a very conservative 1.1-to-1 ratio. And the company is in good shape to fund record capital spending with available sources for the rest of the year as well.

Unfortunately, it looks like we’re going to have to wait for a definitive post-conversion dividend policy until conversion plans are officially mailed out in time for a shareholder vote on December 15. The company does plan to pay monthly, as is the case now.

The rate will likely depend on what happens to energy prices and development efforts in the meantime. But regardless, ARC looks ready to profit from higher energy prices, as well as dug in if conditions should weaken once again. Buy ARC Energy Trust, one of the safest of Canada’s high-yielding energy plays, up to USD22.

Daylight Resources Trust (TSX: DAY-U, OTC: DAYYF) is also keeping coy about its post-conversion dividend policy, despite asking unitholders to vote on a move that will presumably take place this summer. The good news is the company continues to enjoy great success with its development efforts in the Cardium shale oil trend and is adding to its other strategic efforts elsewhere, such as a “core” natural gas resource play at Elmworth.

Skillful hedging enabled the company to score an 11 percent boost in realized selling prices for natural gas over the fourth quarter of 2009, as well as 5 percent boost in realized oil prices. Production was increased 4 percent from fourth-quarter levels and 74 percent from a year ago, even as operating costs were cut 6 percent.

As for headline numbers, revenue rose 9 percent from fourth-quarter levels, and the company’s overall payout ratio came in at 63 percent. Debt-to-funds from operations was just 1-to-1, as the company slashed CAD139.4 million from bank debt.

Ultimately, Daylight’s biggest vulnerability is relying so heavily on natural gas output (60 percent) rather than liquids, for which the prices remain much higher. Recent acquisitions have lifted the oil portion, and aggressive hedging and low costs have softened the impact of lagging gas. Ultimately, however, that may induce management to reduce the payout in order to fund the company’s aggressive growth plans.

Should that happen, investors should remember that Daylight is an extremely high potential producer that trades at a discount to the value of what are arguably steeply undervalued reserves in the ground. That’s why I’m keeping Daylight Resources Trust– a buy up to USD11 for those who don’t already own it–as an Aggressive Holding.

Enerplus Resources Fund’s (TSX: ERF-U, NYSE: ERF) strategic move into “early stage” production opportunities continued to progress in the first quarter of 2010, as the oil and gas company added properties in the Marcellus and Bakken shale trends. The company also progressed on CAD200 million in property sales to fund these efforts, as it held debt to just 0.7 times annualized cash flow.

First-quarter cash flow from operations rose to CAD1.07 per share, up from CAD1.02 the year before, covering distributions by nearly a 2-to-1 margin. Operating costs came in at just CAD9.96 per barrel of oil equivalent, topping expectations and output of 84,719 barrels of oil equivalent per day (boe/d) was in line with expectations for 2010.

Enerplus’ production remains slanted toward natural gas (59 percent), a fact that’s kept revenue and earnings weaker than is the case for oil-weighted trusts. Nonetheless, these results support management’s assertion that it will be able to maintain the current distribution rate after the trust converts to a corporation in late 2010/early 2011. Meanwhile, the trust is moving more toward oil, with 56 percent of capital spending in the first quarter going in that direction.

The oldest of the income trusts, Enerplus looks set to continue providing high income and growth as a corporation. Management expects a tax rate of 10 to 15 percent once CAD3 billion in tax pools have been extinguished. Over the long term, distributions will depend mainly on what happens to energy prices. But for conservative investors who want such a bet, Enerplus Resources Fund is about the lowest-risk buy in the industry, up to USD25.

Penn West Energy Trust (TSX: PWT-U, NYSE: PWE) units have been all over the map since the company announced its first-quarter earnings this week. That, however, has little or nothing to do with the oil and gas producer, which came in with results that were right in line with management guidance for production, spending and debt reduction.

As expected, output dipped to an average of 96,317 boe/d for oil and natural gas liquids and the company enjoyed a solid increase in realized selling prices for its liquids. Natural gas output was aggressively hedged, resulting in a relatively flat year over year price. Gas output fell 8 percent, resulting in an overall production drop of 9 percent for the overall company, much of it due to asset sales.

The asset sales are part of a strategic repositioning by Penn West that’s no less significant to its fortunes than the split-up of Provident Energy Trust (TSX: PVE-U, NYSE: PVX), as discussed in the April 20 Flash Alert. Provident is due out with earnings on May 13 and will be discussed further in a Flash Alert. Provident Energy Trust is currently a buy up to USD13.

Penn West’s move has done two things. First, it’s dramatically deleveraged the balance sheet, with another CAD423 million slashed so far in 2010. Second, it’s taken the production base to a focus on higher-impact properties, with the potential to dramatically lift output and cash flow in coming years.

In a very real sense, it’s this refocus of effort that’s made the distribution such a tough decision for management. The company is loath to rely on capital markets for added funds, an admirably conservative attitude. The problem is that relying on internally generated funds after taxes will require either higher energy prices or the use of operating cash flow now being paid out in dividends.

My view remains some sort of dividend cut is coming here but that management will do what it can to minimize it when the time comes. Rising oil prices will help a lot to achieve that goal, which, ironically, does leverage Penn West somewhat to what happens to the economy. But the most important thing is the shares are trading at only about 70 to 75 cents per dollar of a conservative valuation of reserves. That’s enough to keep me in this one, no matter what ultimately happens to the distribution. Buy Penn West Energy Trust up to USD22 if you haven’t yet.

Vermilion Energy Trust (TSX: VET-U, OTC: VETMF) reported record first-quarter production of 30,184 boe/d and should see further increases the rest of the year, as new natural gas output in the Netherlands and light oil from the Cardium trend starts to come on stream. Funds from operations were slightly lower, owing to a lower percentage of oil output, but still covered the distribution comfortably with a payout ratio of 58 percent for the quarter.

Overall capital spending exceeded funds from operation by nearly a 2-to-1 margin, mainly because of aggressive development efforts in Europe and Canada. That’s likely to continue as long as the capital market remains friendly to Vermilion, given the company’s considerable opportunities globally. The Corrib natural gas project off the Ireland coast, for example, is still on track to being producing at the end of 2012, boosting the company’s overall production volumes 25 to 30 percent.

Nonetheless, management doesn’t anticipate the need to raise additional equity to make this growth happen. And it continues to project the same level of distributions when the trust converts to a corporation, now planned for September 1.

The only problem investors have had with Vermilion in recent months has been a high share price that’s remained above my buy target. The recent pullback in the markets, however, has again put the units back on the bargain rack, even as these results confirm the company is strong as ever. Vermilion Energy Trust is a buy up to USD33.

What to Watch

About half of Canadian Edge Portfolio and How They Rate companies have now announced their first-quarter 2010 earnings. Most of the rest will be coming in over the next few weeks. We’ll be recapping them in Flash Alerts for Portfolio selections and the website version of How They Rate for the rest.  The June issue will have a full recap.

Here are expected reporting dates for the rest of Portfolio companies that hadn’t reported by our issue deadline.

Conservative Holdings

• Artis REIT (TSX: AX-U, OTC: ARESF)–May 12
• Atlantic Power Corp (TSX: ATP, OTC: ATLIF)–May 14
• Bird Construction Income Fund (TSX: BDT-U, OTC: BIRDF)–May 13
• Brookfield Renewable Power Fund (TSX: BRC-U, OTC: BRPFF)–May 12
• Canadian Apartment Properties REIT (TSX: CAR-U, OTC: CDPYF)–May 11
• Innergex Renewable Energy (TSX: INE, OTC: INGXF)–May 13
• Just Energy Income Fund (TSX: JE-U, OTC: JUSTF)–May 14
• Keyera Facilities Income Fund (TSX: KEY-U, OTC: KEYUF)–May 11
• Macquarie Power & Infrastructure Income Fund (TSX: MPT-U, OTC: MCQPF)–May 11
• Northern Property REIT (TSX: NPR-U, OTC: NPRUF)–May 11

Aggressive Holdings

• Ag Growth International (TSX: AG-U, OTC: AGGZF)–May 17
• Chemtrade Logistics Income Fund (TSX: CHE-U, OTC: CGIFF)–May 10
• Newalta (TSX: NAL, OTC: NWLTF)–May 10
• Paramount Energy Trust (TSX: PMT-U, OTC: PMGYF)–May 7
• Peyto Energy Trust (TSX: PEY-U, OTC: PEYUF)–May 13
• Provident Energy Trust (TSX: PVE-U, NYSE: PVX)–May 13
• Trinidad Drilling (TSX: TDG, OTC: TDGCF)–May 12

Following is a list of the trusts in the Portfolio that have yet to announce or implement post-conversion dividend policies. Note that High Yield of the Month AltaGas and Bell Aliant are no longer on the list after announcing their conversion plans last month. The rest of the Portfolio holdings have either converted, don’t have to convert or have yet to convert but have otherwise announced plans for post-conversion dividends.

• ARC Energy Trust (TSX: AET-U, OTC: AETUF)
• CML Healthcare Income Fund (TSX: CLC-U, OTC: CMHIF)
• Daylight Resources Trust (TSX: DAY-U, OTC: DAYYF)
• IBI Income Fund (TSX: IBG-U, OTC: IBIBF)
• Penn West Energy Trust (TSX: PWT-U, NYSE: PWE)
• Provident Energy Trust (TSX: PVE-U, NYSE: PVX)

As for Portfolio companies that have never once cut dividends, AltaGas and Bell both drop off the list, as management elected to reduce distributions when they convert to corporations. That was as expected for both. Of this list, CML and IBI have yet to declare post-conversion dividend policies.

• Ag Growth International (TSX: AFN, OTC: AGGZF)
• Artis REIT (TSX: AX-U, OTC: ARESF)
• Atlantic Power Corp (TSX: ATP, OTC: ATLIF)
• Bird Construction Income Fund (TSX: BDT-U, OTC: BIRDF)
• Brookfield Renewable Power Fund (TSX: BRC
• Canadian Apartment Properties REIT (TSX: CAR, OTC: CDPYF)
• CML Healthcare Income (TSX: CLC-U, OTC: CMHIF)
• Colabor Group (TSX: GCL, OTC: COLFF)
• IBI Income Fund (TSX: IBG-U, OTC: IBIBF)
• Just Energy Income Fund (TSX: JE-U, OTC: JUSTF)
• Keyera Facilities Income Fund (TSX: KEY-U, OTC: KEYUF)
• Northern Property REIT (TSX: NPR-U, OTC: NPRUF)
• Pembina Pipeline Income Fund (TSX: PIF-U, OTC: PMBIF)
• RioCan REIT (TSX: REI-U, OTC: RIOCF)
• Vermilion Energy Trust (TSX: VET-U, OTC: VETMF)