by tomkoz | December 10, 2019 12:04 pm
Sandridge Permian Trust (PER) is in the energy business. I won’t waste your time by listing what they do or don’t do. Suffice it to say as a Trust they pay out a dividend and have a shelf life. If my research is correct that shelf life is approximately 16 more years. The dividend is 32+%. Yep, a whopper but then the shares are only (as I write) .87 per. Their 52 week range is .80 – 2.55. Realistically I don’t expect to see that 2.50 range unless the price of oil shoots through the roof.
I enter this puppy into discussion because in my fragmented thought theology an issue with a known shelf life and almost guaranteed dividend (what dividends are permanently guaranteed, right?) selling for under a buck seems like a no brainer. Yes, it will take about 3 years for a return of principal via the dividend but can’t that be said for any other dividend payer. I’m not considering taxes in the equation so don’t beat me up for my timeline. I’m only looking at PER for the 1) dividend and 2) possible bang for the buck given oil is the base commodity.
I also realize you have to buy a helluva lot of shares to make the bang on the buck worth your time. Unless, of course, you just want to be paid to sit back and watch (maybe and pray) for that to happen.
OK, I’ve given you a thumbnail sketch and presenter some of my thoughts. Anybody have suggestions, comments, critiques, or anything else to throw in the pot? I’d love to hear what this community tinks.
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