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Strategies & Market Trends : Dividend Investing -- Ignore unavailable to you. Want to Upgrade?

To: DividendGrowth who wrote (373)	2/19/2008 9:03:12 PM
From: doug5y	Read Replies (1) \| Respond to of 387

I've got over 14% on my position. Sorry for the delay in getting back, I don't watch what's going on over that much. My increase is mostly capital gains.

To: DividendGrowth who wrote (373)	6/2/2009 12:06:41 PM
From: mek42	Respond to of 387

In my experience, oil royalty trusts (US and Canadian) tend to be priced to give 10 - 15% yields. The current dividend yield (based on the most recent $0.05 monthly dividend and price of $12.25) is just under 5%. Unless oil keeps increasing in price, driving PBT's dividend up (US and Canadian oil is more expensive than overseas oil, so US and Canadian oil trusts see more oil pumped, thus greater dividends when oil is priced high) I would expect the price of PBT to drop to the $7 - $10 range. A key difference between US and Canadian oil trusts is that the US trusts are not allowed to acquire new fields, while the Canadian trusts are. So one should consider oil field reserves / longevity as part of one's due diligence in making investment decisions regarding US oil trusts. Best of luck with your investing!