based on percentage of depletion per quarter it can be assumed that there will be 29 more distributions plus on minus 1 or 2....the last quarter was .76 with oil at the bottom of their hedge range 80 dollars. do the math 29 x .76 for minumim distribution. but if the start to get 90 dollars/ barrel as is current value, better for shareholder.. by my calulations at using 16.50/at 4% over 9 yrs u would b at 22.4.. which appears to b about what dist. would be... my reasoning for being in this trust is 4% is a good yield and the chances higher distributions are possible. i still can't find a cd over 2% for 5 to 6 yrs
I will stay away from WHZ. Its sibling WHX has been extremely disappointing so far. After 10 years, you only get your original investment back. No more no less. It is going to happen to WHZ again. 10 years, $20 in, $20 out. The parent company controls it very well.
I'm afraid you don't understand how it works. You buy, collect dividends, and sell before it tanks in the last 3 or 4 years of it's life. I did that with WHX and did extremely well. WHX is now dead in my mind and WHZ is currently an excellent investment.
This is the way US Royal trust works. As long as the reserve has something to sell, you make money. But within the last 30% of the life of a US Royal Trust, further you get to the end, more the trading is a #$%$ shoot! Nothing that we do not known.
no im saying if u buy today at 16.6 over 9 yrs the distributions should equal 22.4 plus or minus unless everything crashes. but if the trust stays the course this is a a cd having a 4% yield.. as they have oil hedges at 80. if oil hoveres around 90 to 100 the trust payouts could go higher than 22.4... im saying even with stock ups and downs holding will yield 4% minimum maybe more... worth the risk to me instead of locking in a cd at 2% for 5 to 10 yrs