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.