Royalty trusts are great (and popular) - up until a dividend cut can seriously ding their unit...

|By:, SA News Editor

Royalty trusts are great (and popular) - up until a dividend cut can seriously ding their unit prices. Oil and gas wells and mines get more depleted, and thus yields are doomed to decline. Great investments at times, the trusts are far from bargains today, with many investors apparently willing to buy on current yield alone.