This oil, natural gas, and mineral company recently announced its fourth quarter distribution of $0.242260 to unit holders. The shares have a current annual dividend yield of 8.60%, paid quarterly.
Dorchester Minerals, L.P. (DMLP)
From The Stock Spin-off Investing Newsletter
Dorchester Minerals is not a spin-off but is a very interesting company. It is in the oil and gas business but don’t stop reading yet. It’s one of the highest quality companies that I’ve ever seen.
Dorchester owns a bunch of mineral rights and royalties. As such, it doesn’t spend anything on capex and spews cash flow. Better yet, it pays out all of the cash that it receives as dividends and has no debt.
The latest insider purchases happened in December 2020, but insiders have been buying aggressively for quite some time.
The stock is well below its pre-pandemic levels despite oil prices back above $60/bbl.
One other positive is this stock can be owned in retirement (non-taxable accounts). Most partnerships should not be owned in non-taxable accounts as they can generate unrelated business taxable income (UBTI) that you will have to pay (eliminating the tax advantage of your retirement account).
However, one of Dorchester’s corporate goals is to be “UBTI-free”.
Richard Howe, CFA, The Stock Spin-off Investing Newsletter, stockspinoffinvesting.com, 617-750-7454, February 22, 2021
Thus, it appears (although I’m not a tax advisor!) to be a safe name to own in a retirement account.