A 14% Yield With Upside Potential On A Pure-Play Trust

Where do you think the price of crude oil will be in the coming quarters - up, down, or sideways? The US Energy Information Administration (the EIA) sees oil prices continuing to stay at better levels in 2017 and 2018. This trust yields 13.55% on a trailing basis. But its last two quarterly distributions jumped by over 60% vs. the previous two. Its forward yield should be ~16% due to higher payouts and higher oil prices. It issues a 1099 at tax time - no K-1.

If you're looking for exposure to the price of oil, there are some trusts out there which can accomplish that and pay you an attractive distribution yield. We just dipped our toe in the water with MV Oil Trust (NYSE:MVO), a pure play trust which gets over 98% of its income from oil. We'd like to hear from you about your favorites. The Trust was formed on August 3, 2006, under the Delaware Statutory Trust Act pursuant to a Trust Agreement among MV Partners, LLC, a Kansas limited liability company, as trustor, The Bank of New York Mellon Trust Company, N.A., as Trustee, and Wilmington Trust Company, as Delaware Trustee.

Source: Seeking Alpha

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