STOHF - VOC Energy Trust: Impressive Yield But Possibly Overvalued
- Energy trusts can be an excellent way to profit from rising energy prices because their income and distributions are directly linked to the price of crude oil and natural gas.
- VOC is able to pay its owners an impressive 10.37% yield based on the profits from its producing properties in Texas and Kansas.
- The trust has a limited life and investors will not likely have any significant remaining value after the end of 2030.
- Energy prices are likely to remain relatively strong even after the Ukraine crisis has fully abated due to years of chronic underinvestment by the industry.
- The trust may be overvalued at its current price.
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VOC Energy Trust: Impressive Yield But Possibly Overvalued