User 305589

Update on Three Canadian Oil Royalty Trusts

pgh seems to me the best of those three. insiders have been buying quite heavily in q4,too. low oil and gas prices hurt them as anyone in the industry, no doubt. however, they are pretty well hedged and the payout ratio is quite reasonable at just about 50%.
that being said, my favourit is PMT, listed in Canada only. Insiders kept buying, the yield is great and it is well managed.
to those who ask how anyone could recommend buying a stock that has fallen 60-80% i can only reply: if the business is not permanently impaired, it makes certainly much more sense to buy it now then before that 80% drop, no?
go figure.
people have become accustomed to flee everything that carries a high dividend yield assuming that this means per se it is unsustainable. like pawlowian dogs. high dividend yields of 20-30% are indeed unsustainable, i agree. but they can be 'cured" also by rising stock prices - not just by lowered payouts.