I have always loved the royalty trusts, and these four are my favorite. I tried to regionalize them for you, so you don't invest too much money in one area. I could try to find higher dividends but I like the range here.
BP Prudhoe Bay Royalty Trust (NYSE:BPT) operates as a grantor trust in the United States. The company holds overriding royalty interests constituting a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope in Alaska. The Prudhoe Bay field extends approximately 12 miles by 27 miles and contains approximately 150,000 gross productive acres. As of December 31, 2010, its estimated net remaining proved reserves were 78.275 million barrels of oil and condensate, of which 67.401 million barrels are proved developed reserves and 10.874 million barrels are proved undeveloped reserves. The company was founded in 1989 and is based in Austin, Texas. The trust is currently paying around 7%, with a 100% payout ratio, and its up 4% in the past 52 weeks, which isn't horrible with the gyrations oil prices have undergone.
Permian Basin Royalty Trust (NYSE:PBT) owns overriding royalty rights in mineral properties in the United States. It holds a 75% net overriding royalty interest in the Waddell Ranch Properties located in Crane County, Texas, and a 95% net overriding royalty interest in the Texas Royalty Properties in Texas. As of December 31, 2009, the Waddell Ranch properties contained 372 net productive oil wells, 87 net productive gas wells, and 131 net injection wells. The Texas Royalty properties consisted of approximately 125 separate royalty interests containing approximately 51,000 net producing acres. The company was founded in 1980 and is based in Dallas, Texas. The trust is currently paying around 6.2% with 100% payout ratio and trading down about 10% in the past 52 weeks.
San Juan Basin Royalty Trust (NYSE:SJT) operates as an express trust. The trust has a 75% net overriding royalty interest carved out of Burlington Resources Oil & Gas Company LPs oil and gas leasehold and royalty interests (the underlying properties) located in the San Juan Basin in northwestern New Mexico. As of December 31, 2009, the underlying properties consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba and Sandoval Counties of northwestern New Mexico, and 1,163 net wells. Compass Bank serves as the trustee of the San Juan Basin Royalty Trust. The trust was founded in 1980 and is based in Fort Worth, Texas. SJT pays 6% and is up around 2% in the past 52 weeks. Payout ratio is 100%.
Mesa Royalty Trust (NYSE:MTR) holds royalty interests in oil and gas producing properties in the United States. It has interests in properties located in the Hugoton field of Kansas, the San Juan Basin field of New Mexico and Colorado, and the Yellow Creek field of Wyoming. The company was founded in 1979 and is based in Austin, Texas. It's on the lower market cap side, at around $81mm, and the yield is just under 8%. The trust has a 93% payout ratio, and is down 13% in the past 52 weeks, so you are buying this at a discount, but seems a little riskier because of the smaller market cap.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.