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Portfolio of American Oil and Gas Royalty Trusts

If you are looking for high income, consider an American royalty trust that sells oil and gas from its proven and probable reserves. The trust pays shareholders a large percentage of its free cash in the form of cash distributions (dividends). Typically, the yield is in excess of five percent.

One downside of a royalty trust is that eventually it will run out of oil and gas so before you buy one, check the reserve life of the trust's holdings. Look for a reserve life of at least ten years and the longer the better. Of course a trust can purchase new reserves but there is no guarantee of their life span.

A trust pays its distributions from free cash flow (net income plus depreciation minus capital spending). Compute the ratio of the distribution with the cash flow. A small percentage means the distribution can be maintained or increased. Beware of a large percentage of 90 percent or more.

The day-to-day price of a trust usually tracks the price of oil and natural gas. When oil and gas prices fall, the share prices of most trusts will fall. Unlike a bond that pays you full face value when it matures, the future price of a royalty trust is not guaranteed.

IMPORTANT NOTE: Before investing in these trusts, check with your tax advisor about the tax treatment of the cash distributions.

Here are 16 trusts.

American Oil and Gas Royalty Trusts
Stock
Quote
Annual Dividend & Yield
Recent Dividends
1-Yr Price Chart
BP Prudhoe Bay Royalty Trust
3.33 (16.45%)
Chesapeake Granite Wash Trust
0.40 (16.91%)
Cross Timbers Royalty Trust
1.02 (6.68%)
ECA Marcellus Trust I
0.34 (14.64%)
Enduro Royalty Trust
0.32 (9.32%)
Hugoton Royalty Trust
0.12 (6.55%)
Marine Petroleum Trust
0.38 (10.73%)
Mesa Royalty Trust 
1.18 (10.11%)
MV Oil Trust
0.90 (16.07%)
Permian Basin Royalty Trust
0.49 (5.38%)
Sabine Royalty Trust
1.94 (4.86%)
San Juan Basin Royalty Trust
0.55 (8.52%)
SandRidge Mississippian Trust I
0.28 (18.97%)
Sandridge Mississippian Trust II
0.24 (16.81%)
SandRidge Permian Trust
0.50 (17.08%)
VOC Energy Trust
0.48 (10.79%)
Dividend yield data from Yahoo! Finance as of Jul-22-2017. Price and dividend data from Quandl.


To inspect the performance of the American Oil and Gas Royalty Trusts portfolio, see the returns table and chart below. Portfolio values are computed using quarterly closes from Quandl.

The 8 stocks included in the portfolio computations are: BPT, CRT, HGT, MARPS, MTR, PBT, SBR and SJT. The current value of the portfolio assumes that $1,250.00 was invested (total of $10,000) in each at its closing quarterly price for the current date in 2007. The 8 stocks excluded from the portfolio computations because prices started after 2007: CHKR, ECT, NDRO, MVO, SDT, SDR, PER and VOC.


American Oil and Gas Royalty Trusts - Return Results
Portfolio:
American Oil and Gas Royalty Trusts
Start date:
Jul-23-2007
Start value:
$10,000
End date:
Jul-23-2017
End value:
$8,174
Number prices
41
Minimum value occurred on Dec-31-2015
$5,547
Maximum value occurred on Dec-31-2011
$15,904
Total gain or loss (Start date to End date)
-18.26%
Annualized gain or loss (Start date to End date)
-1.95%
Total dollar value on End date of a $10,000 purchase made on Start date
$8,174
Average percent return for all possible buy/sell combinations
-5.07%
Number returns
820
Number profitable returns (Winners)
312
Percent profitable returns
38.05%
Number unprofitable returns (Losers)
508
Percent unprofitable returns
61.95%
Winners to losers ratio
0.61
See Multiyear Chart of Monthly Portfolio Values


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