If you’re looking for big yields, take a look at this quiet group of top dividend stocks: oil royalty trusts. These partnerships earn lucrative royalties from their land holdings. Most of this income gets passed on to owners, which results in yields of five, seven, and sometimes even nine percent.
One of my favorites is Black Stone Minerals LP (NYSE:BSM). The firm owns over 17 million acres across 40 states. And, while most people have never heard of it, you should take a look at this trust for a few reasons. First, it’s a great business. To get a single barrel of crude out of the ground, drillers spend boatloads of cash on overhead costs, completion costs, and exploration costs. For this reason, many of these stocks don’t pay out big yields.
Source: Income Investors
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