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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: John Sladek who wrote (18873)3/23/2004 9:20:35 PM
From: Elroy JetsonRead Replies (2) of 306849
 
Many investors in oil royalty trusts do not realize that their "dividends" are a combination of income and a "return of capital".

There is no set date for "a repayment of the principal" because this event does not occur. Once the well is dry, there is essentially no residual value.

Some people think they're buying a bond paying a 12% coupon. If the payments continue for only eight years, you receive back only an amount of money equal to your capital outlay without any profit.
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