High-dividend stocks are always popular with investors, but with energy prices taking a sharp dive in recent months, energy bulls with a penchant for income have been flat out of luck. The price of oil most recently peaked in June at over $100 a barrel. With several strong market forces combining to add pressure to energy prices, oil prices could be primed for $50 a barrel within the next few months.
Royalty trusts are a type of corporation that owns production rights on natural resource properties including oil wells and natural gas fields. They’re not in charge of operations — they just collect royalties on the production, and in exchange for favorable taxation, they pass along those profits to shareholders, usually in the form of cash “distributions,” which are similar to dividends. And many royalty trusts actually have “termination dates,” after which the trust simply stops existing. Until then, though, these royalty trusts are essentially high-dividend stocks that both appreciate and throw off income as their underlying commodities appreciate. Today, we’re looking at three such trusts — the VOC Energy Trust (VOC), Sabine Royalty Trust (SBR), and BP Prudhoe Bay Royalty Trust (BPT).
Source: InvestorPlace
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Posted by D4L | Wednesday, December 31, 2014 | ArticleLinks | 0 comments »________________________________________________________________
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