SwingTrade Member Forum

[Dktway]

stock_hippie RE: Dividends

LRT is a "Royalty Trust". Basically a REIT for Oil and Natural Gas instead of property. The amount of the dividend is determined primarily by the price of NG and Oil. Other factors can come into play however. LRT had a lower dividend for awhile due to the costs of drilling more wells. Now that the wells are done, LRT's dividend has gone back up. Another item some people forget is the number of days in a month. Naturally the dividend from a 28 day month will be less than the dividend of a 31 day month IF the price of NG and oil is equal. LRT derives more of its income from NG.

If a person had 1,000 shares of LRT here is the monthly income from the last 3 pay outs:

03/15/04 $64.19
04/15/04 $79.25
05/15/04 $35.12 (This dividend is from Feb 04 a 28 day month and lower NG prices)

Hope this answered what you were asking me in PM.