Royalty Units

Filed Under »
Dictionary Says

Definition of 'Royalty Units'

An ownership unit in a royalty trust. A royalty unit gives the unit holder a stake in the income generated by the holdings of the trust. A royalty trust takes ownership stakes in operating companies or in their cash flows. The royalty trust owns the income or cash flow that the company generates and passes this income on to the royalty unit holders of that trust. Royalty units are seen as an attractive investment because the income generated by the assets is subject to taxes at the individual level, rather than the double taxation which is seen with dividends on common stock.
Investopedia Says

Investopedia explains 'Royalty Units'

For example, let’s say that an investor holds a royalty unit in ABC Oil & Gas Royalty Trust, which owns several oil-producing operations. The investor in the royalty trust will receive income distributions as the underlying oil-producing operations generate income for the trust. If the trust’s assets generate $1 million dollars and there are 100,000 royalty units, each unit will receive $10.

Related Definitions

Search results for

'Royalty Units'

  • RRSPs: Investment Eligibility | Investopedia

    http://www.investopedia.com/university/rrsp/rrsp5.asp
    ... Bullion. Funds of Stocks (ie mutual funds), Mortgages, Royalty Units, Depository
    Receipts, Investment Grade Gold & Silver Coins. Shares ...

  • Big Oil Dividends

    http://stocks.investopedia.com/stock-analysis/2010/Big-Oil-Dividends-BPT-PBT-HGT-SBR0120.aspx
    ... Trusts like Sabine Royalty (NYSE:SBR) and the preceding three units are
    great places to start adding royalty income to a portfolio. ...

  • An Introduction To Canadian Income Trusts

    http://www.investopedia.com/articles/stocks/08/canadian-income-trust-royalty-trust-canroys.asp
    ... It is not rare to see yields on these units in excess of 10 ... type of investment vehicle
    goes by several names: Canadian income trust, Canadian royalty trust, or ...

  • Income Funds 101

    http://www.investopedia.com/articles/mutualfund/09/income-funds.asp
    ... Check with your advisor regarding tax treatment on Canadian royalty trusts. ...
    Closed-end funds are mutual funds with a fixed number of units that trade on the ...

  • Say Hello To LRR Energy

    http://stocks.investopedia.com/stock-analysis/2011/Say-Hello-To-LRR-Energy-LRP-CHK-CHKR-NDRO1117.aspx
    ... Enduro Royalty Trust (NYSE:NDRO) issued 13.2 million trust units at $22 per
    unit in early Nov. 2011, raising approximately $290 million. ...

  • Dirty Money: Coal Master Limited Partnerships

    http://stocks.investopedia.com/stock-analysis/2009/Dirty-Money-Coal-Master-Limited-Partnerships-NRP-PVR-PVG-ARLP-AGHP0105.aspx
    ... In return, the partnership collects royalty payments. ... The units yield around 13%
    and have increased distributions over the last 21 consecutive quarters - by 105 ...

  • An Even Outlook On Rocky Mountain Chocolate Factory

    http://stocks.investopedia.com/stock-analysis/2011/An-Even-Outlook-On-Rocky-Mountain-Chocolate-Factory-RMCF-DRI-BOBE-FRS-PFCB1014.aspx
    ... Royalty and franchise fees accounted for another 19% of total sales, and experienced
    a ... the top line consisted of retail sales at company-owned units and jumped ...

  • Neustar Clearing Impressive Profitability

    http://stocks.investopedia.com/stock-analysis/2011/Neustar-Clearing-Impressive-Profitability-NSR-T-VZ-S-LVLT-VRSN0802.aspx
    ... advanced 16% to $147.7 million as both of Neustar's operating units reported positive ...
    of support" such as a new customer service center and royalty expenses. ...

  • Penn Virginia Turning Coal Into Cash

    http://stocks.investopedia.com/stock-analysis/2010/Penn-Virginia-Turning-Coal-Into-Cash-PVR-BTU-ACI-MEE-RRC-EOG-ARLP-NRP0512.aspx
    ... Or, you could also just buy the shares of a royalty partnership like ... distribution
    at $0.47 per unit for the quarter (partnerships have units and distributions ...

  • Executive Compensation Gone Mad

    http://stocks.investopedia.com/stock-analysis/2010/Executive-Compensation-Gone-Mad-ARO-F-CEPH-GOOG-JWN0616.aspx
    ... Pensions for Royalty Executive compensation expert Graef Crystal believes SERPs
    should ... $29.9 million in total compensation were performance stock units that won ...

Related Articles

Partner Links