Quote:
Originally Posted by solarguy09
Yes, ask Greg about Oil Royalty Trusts.. BPT, and PBT, have been some of my holdings.. Most of mine are dividend paying assets..BPT is an 8 % dividend with a 50% plus rise in 3 and 5 year chart. The total return was 107% to 167%.
3, and 5 year PBT is a 6 % dividend, with a 30 % and 45% rise in 3 and 5 year charts.
I am just asking.
although the gains are stellar, i am looking at the dividends...well both, but i am after income stream.
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One of the things that would concern me is that the performance is obviously tied to the price of crude oil. Take a look at a crude oil chart.
http://futures.tradingcharts.com/chart/CO/M
The charts of BPT and PBT are highly correlated. If you look at the dividends, during the declines in crude oil prices you will see the dividends declining as fast as the price of crude. While they currently pay a high dividend, I would not expect that to continue if the price of crude declined.
These look much riskier to me than most of the other stocks we have been discussing.