Last Friday, April 18, 
Precision Drilling Services TR (NYSE: PDS), the Canadian Trust, announced that the Board of Trustees has approved a cash distribution for the month of April 2008 of $0.13 per trust unit of Precision. The distribution will be payable on May 15, 2008 to unit holders of record on April 30, 2008.
The current dividend yield of 5.8% remains very generous and far above most other stocks in the sector. After some of my high dividend stock recommendations either under performed or simply cut their distribution, it is reassuring to see that PDS not only is maintaining its dividend, but in this particular case continues to pay out monthly, allowing for better compounding of the yield.
The stock closed today at $27.15, up 75.5% from $15.47 when I recommended the stock three months ago. If you got into the stock back then you would still be receiving over a 10% yield. Last year I had several high flyers but not all of them stayed up so I am watching Precision closely for signs of weakness or changes in the business.
Everything I have seen in business journals and the news regarding the natural gas industry has been positive. Most suggest that gas demand and pricing is stable if not projected to go higher closing the gap with petroleum energy. Oddly, while PDS stock has been moving up in value with its expansion into North America and the recent focus on the industry, I have not read any specific stories highlighting the company. You would think there would be a story here somewhere given the dramatic growth during a sagging stock market.
I am not so foolish to think I am the only one that has taken notice of this company, and certainly the stock appreciation indicates others have, so why no stories? Perhaps it is simply the fact that the company is not a household name and editors do not think it will generate enough buzz. Regardless or the reason, a company rising so fast will get noticed eventually.
In the mean time I will continue to be the play-by-play announcer and report anything I can find.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of PDS.
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