Canadian Royalty Trusts versus American Royalty TrInvestors have been looking at Canadian Royalty Trusts for their high income. These trusts pass through all their earnings from oil and gas wells to the trust holders, similar to the way that real estate investment trusts handle their payouts. Because the entity is set up as a trust instead of a corporation, there is no taxation at the corporate level. In addition, a large part of the dividends are non-taxable due to depletion and depreciation deductions.
Unfortunately, the Canadian government came out with a plan to tax all Canadian trusts at the corporate level beginning in the year 2011. This caused all Canadian trusts to suffer a severe drop during the month of November, which in turn gave the trusts a higher yield. Although they have recovered slightly and therefore have somewhat lower yields, the average trust yield from Canada is still significantly higher than the U.S. royalty trusts.
Below is a list of the Canadian Royalty Trusts that are traded on American stock exchanges (there are many more that are just traded on the Toronto Stock Exchange). Also is a list of American Oil and Gas Trusts, an Iron Ore Royalty Trust, and a European Royalty Trust.
<em><strong>(The following 23 suggested companies are for your review)</strong></em>
Canadian Trust Reviews
American Oil and Gas Trusts
CANADIAN OIL ROYALTY TRUSTS
(traded on U. S. Exchanges)
See Article...
AMERICAN OIL & GAS ROYALTY TRUSTS
Listed In The Article
AMERICAN IRON ORE ROYALTY TRUST
Mesabi Trust (MSB) 9.00%
GERMANY ROYALTY TRUST
North European Oil Royalty Trust (NRT) 8.2%