David Zanoni
Momentum, growth at reasonable price, long-term horizon

SandRidge Permian Trust: Benefit From The 14.9% Yield

Executive Summary: Investors are likely to benefit from continued double-digit yields with this small-cap royalty trust due to steady commodity prices and new leadership.

For those investors who don't own land in oil and natural gas drilling areas but still want to participate in an investment that is similar to receiving royalty payments may consider owning a royalty trust. SandRidge Permian Trust (NYSE:PER) was designed by SandRidge Energy (NYSE:SD) to distribute most of the cash generated from the Permian interests to unitholders. The trust currently has a forward yield of 14.9% with a payout ratio of 99%. The 1% that is not paid to unitholders is used for administrative expenses, cash reserves, and taxes. As of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details