In this episode of Dividend Dive, we take a deep dive into San Juan Basin Royalty Trust, a high yield dividend producing stock that has captured income from one of the largest natural gas fields in the United States.

Established in 1980, the trust owns a portion of the mineral rights in the San Juan Basin, which spans across New Mexico and Colorado. It receives royalties from the production of oil and gas on those lands, which are then distributed to its unit-holders on a monthly basis.

Over the years, the trust has generated significant returns for its unit-holders, having given over two billion dollars in royalties since its inception. Its current dividend yield, as of May 5, 2023, is 31.51%, significantly higher than the average dividend yield offered by other oil and gas companies.

However, the trust's income is directly tied to the production of oil and gas in the San Juan Basin. Therefore, the trust has been focusing on increasing its reserves and production to ensure a steady stream of income for its unitholders.

San Juan Basin Royalty Trust's growth prospects are closely tied to the performance of the energy sector, particularly the oil and gas industry. While the trust has limited opportunities for growth through acquisitions or exploration, its experienced management team has been successful in maximizing returns from its existing assets.

In this episode, we discuss the trust's financial performance, its growth prospects, and the risks associated with investing in the energy sector. We explore the volatility of energy prices, the trust's limited opportunities for growth, and the potential concerns for investors seeking capital appreciation.

Join us as we explore the story of San Juan Basin Royalty Trust, its position in the energy sector, and what investors need to know before making any investment decisions.

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