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.
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Man ---- You guys are some serious INVESTORS!!
Okay --- Oil Royalty Trusts -- of which there are many -- and really "land leases" -- where the trust owns the mineral rights -- and they generate cash and spin that off to the "investors" in the trust. They are GIANT CASH COWS when oil prices are high!!
Now here's the tricky part. Nobody really knows how much oil is there - and how long it will be flowing - and at what rate - and at what cost to lift - and what the market price will be.
BPT is an OLDER trust - pumping some 20 years.... So ask yourself -- do they have 100 years of oil left? Do they run dry next week? RISKY -- you bet. Remember what you get with RISK?? Higher "rewards" thus the high dividend - because all the stars are aligned! I own a similar trust -- Chesapeake Granite Wash Trust (CHKR)....
Like all of these things we discuss --- Each person needs to do their research --- and understand all of what they're getting into. Asking here for input is okay --- and should be done -- but remember! They're just OPINIONS... and what is appropriate for me to invest in - may not be suitable for someone with 10,000 or (name an amount). These things all depend on age - $$ - use... and blah blah blah.