Canadian Royalty Trusts That Trade in the U.S.

Investors have been looking at Canadian Royalty Trusts for their high income. These trusts pass through all their earnings from oil and gas wells to the trust holders, similar to the way that real estate investment trusts handle their payouts. Because the entity is set up as a trust instead of a corporation, there is no taxation at the corporate level. In addition, a large part of the dividends are non-taxable due to depletion and depreciation deductions.

Unfortunately, the Canadian government came out with a plan to tax all Canadian trusts at the corporate level beginning in the year 2011. This caused all Canadian trusts to suffer a severe drop during the month of November, which in turn gave the trusts a higher yield. Although they have recovered slightly and therefore have somewhat lower yields, the average trust yield from Canada is still significantly higher than the U.S. royalty trusts.

Below is a list of the Canadian Royalty Trusts that are traded on American stock exchanges [there are many more that are just traded on the Toronto Stock Exchange]. Also is a list of American Oil and Gas Trusts, an Iron Ore Royalty Trust, and a European Royalty Trust.

Canadian Oil Royalty Trusts
[traded on U. S. Exchanges]

Advantage Energy Income (AAV) 18.5%
Enterra Energy (ENT) 17.6%
Canetic Resources (CNE) 17.4%
Harvest Energy (HTE) 17.3%
Pengrowth Energy (PGH) 15.0%
Precision Drilling (PDS) 13.3%
PrimeWest Energy Trust (PWI) 12.4%
Penn West Energy Trust (PWE) 11.3%
Provident Energy Trust (PVX) 11.2%
Baytex Energy (BTE) 9.6%
Enerplus Resources Fund (ERF) 9.4%

American Oil and Gas Royalty Trusts

Santa Fe Energy Trust (SFF) 13.20%
LL&E Royalty Trust (LRT) 6.6%
Permian Basin Royalty Trust (PBT) 7.00%
Sabine Royalty Trust (SBR) 5.1%
Marine Petroleum Trust (MARPS) 9.9%
Dominion Resources Black Warrior Trust (DOM) 9.8%
Hugoton Royalty Trust (HGT) 6.2%
Mesa Royalty Trust (MTR) 2.3%
BP Prudhoe Bay Royalty Trust (BPT) 8.8%
Williams Coal Seam Gas Royalty Trust (WTU) 9.5%

American Iron Ore Royalty Trust

Mesabi Trust (MSB) 9.00%

Germany Royalty Trust

North European Oil Royalty Trust (NRT) 8.2%

Comments

[Goofycat:]

Canadian Royalty Trusts that trade in the U.S.

2007 Jan 14 08:55 AM