By Stephen Leeb Ph.D.
By some measures, this extraordinary company can trace its roots back to 1670 and the rule of King Charles over England and much of North America. Charles granted royalty interests to various British companies to help them build businesses in big swaths land leased or granted by the crown, usually for finite durations. Companies received a fixed amount of time to develop their business, after which the land reverted to the crown.
But in 1670, King Charles made an exception in granting to Hudson’s Bay Company a perpetual royalty interest across a huge tract, some 1.5 million square miles encompassing the entire Hudson Bay watershed and nearly 40 percent of Canada. For as long as people walk the earth, Hudson Bay could collect royalties on activities on its royalty interest land, and develop prime locales to benefit the company alone. Read more
By Kuen (Scott) Chan
One of our favorite MLPs, this upstream master limited partnership (MLP) is engaged in the acquisition, exploration and development of oil and gas properties in the U.S. As of yearend 2012, it had nearly 150 million oil-equivalent barrels (MMBoe) in proved reserves—reserves confidently expected to be profitably producible.
In recent years, management has focused on expanding exposure to higher-margin oil and NGLs. Since 2010, liquids (crude and NGL) have increased from just 35 percent of proved reserves to 53 percent at the end of the June 2013 quarter, driven by accretive acquisitions. Read more
By Stephen Leeb Ph.D.
Most income investors well realize the advantages of owning REITs, or Real Estate Investment Trusts, as these often provide yields significantly higher than the market averages. Many investors, however, know little about a special subset in the category—Canadian REITs. Meanwhile, the huge demand for REITs resulted in their domination of Canada’s IPO market in 2012, although interest rate concerns largely dried up the flow of new Canadian REIT issues in 2013. Roughly 40 exist now, and all trade on Canadian exchanges. They still total less than half the 90 or so of their American counterparts. But a well-researched Canadian REIT selection or two could provide a good complement to the income portion of your portfolio. Read more
By Gregory Dorsey
When assembling a portfolio, investors often overlook an important niche: closed-end mutual funds. These exchange-traded, actively managed funds have a lot to offer, however. In our inaugural issue of Leeb Income Millionaire, we want to introduce you to two such funds from a management company that specializes in income-oriented funds:… Read more