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Sun, 07 Sep 2008
Natural resource trusts.
For those investors seeking to maintain revenue in the face of dividend reductions and the insidious inflation which erodes purchasing power, we suggest royalty trusts such as Dominion Resources Black Warrior Trust (DOM), Permian Basin Royalty Trust (PBT), Sabine Royalty Trust (SBR), Cross Timbers Royalty Trust (CRT) and Hugoton Royalty Trust (HGT). (Note: PBT and HGT were recently removed from Dividend Daily's recommended list, but still carry better than 3 stars out of 5). Price Div Yield CRT 48.68 3.91 8.03% DOM 22.75 2.61 11.47% HGT 29.29 2.73 9.32% PBT 23.61 2.13 9.02% SBR 63.15 5.05 8.00% These strong, well-managed natural resource trusts should be able to increase dividend flow as inflation raises the value of their underlying assets. However, investors seeking to add such stocks to their portfolios should time their purchasing with a channel, band, or E-Zone System. There is no wisdom in paying too much for any stock, no matter what its dividend might be.
Posted 12:25

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