The Best High Dividend Trust All Oil Bulls Must Buy $MVO
Looking for cheap high dividend paying stocks? We are always trading dividend paying oil stocks and ETFs and this one is one of the best we have found.
MV Oil Trust (MVO) has shown a recurring pattern of price troughs that rise into peaks as it approaches its quarterly ex-dividend dates, which fall around the 12th of January, April, July, and October.
With its 11%-plus dividend yield, MVO sits atop the Energy section of our High Dividend Stocks By Sector Tables. By law, trusts are required to pay out at least 90% of their income in distributions, in return for not paying taxes. MVO’s next ex-dividend date should be around Oct. 12. (Trust dividends are referred to as distributions.)
MVO will need to pay out at least $0.76 in October in order to keep pace with its 2011 payout level. Judging by its earnings (see below), this should be achievable.
MVO is one of only of a handful of energy trusts that had strong earnings growth in 2011 (up over 25%) and in the most recent quarter. As noted below, MVO earns royalties from assets that are 98% oil vs. only 2% natural gas — hence its advantage over natural gas trusts, many of which had been hurt by plummeting prices.
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