PrairieSky Royalty Ltd.: Collect Up to $1,200 in Monthly Royalty Cheques Starting October 15

PrairieSky Royalty Ltd. (TSX:PSK) is gushing dividends.

The Motley Fool

If you’re struggling to generate enough income from your portfolio and lie awake at night worrying that you may run out of money in retirement, then this might be the most important message you’ll ever read.

That’s because in this article I’m going to show you a simple way to collect up to $1,200 in monthly income paid by reputable Canadian businesses if you act by September 26.

Let me explain…

It’s one of the greatest income sources available: oil well royalties. Thanks to the energy boom, we’re seeing across the continent, thousands of ordinary, hard-working people are receiving $10,000, $25,000, even $100,000 in monthly royalty cheques. Many people retire on the money generated from their oil wells.

Unfortunately, this opportunity has been off-limits to most investors unless they happened to own land places like Texas, Alberta, or North Dakota. At least that used to be the case… until now. I’ve uncovered a way to earn steady, monthly income through oil royalties without having to buy a single acre of land.

Simply put, I’m talking about becoming a partner with an already-established landowner: PrairieSky Royalty Ltd. (TSX: PSK). The company is a powerful income vehicle for people who wish to invest directly oil-rich acreage, but who do not have the resources to buy parcels of land on their own.

Unlike traditional energy companies, PrairieSky doesn’t actually extract any oil and gas itself. Rather, the company leases drilling rights on its land to energy explorers.

It works like this: PrairieSky charges an up-front fee to oil drillers, granting them the right to explore on the company’s land for a fixed period of time. If the lessee finds oil and gas, it pays royalties to PrairieSky, which are then passed on to shareholders.

Most importantly, PrairieSky pays NO mineral royalties to the government. Most resource companies pay hefty fees to extract any commodities on crown land, sometimes up to 50% of revenues. However, thanks to an obscure tax law, PrairieSky avoids all of these burdensome taxes.

For shareholders, this all means that the company is a cash-gushing machine. Its cost of revenues are virtually zero. Because of this, it generates enormous profit margins between 80% and 90% — a heck of a lot better than your traditional oil company.

Collect your first royalty cheque by October 15

PrairieSky passes on most of this income to investors in the form of consistent, oversized royalty cheques. Today, the company pays an annual dividend of $1.27 per share, which comes out to a yield of 3.7%. However, I expect that payout to grow substantially in the years ahead as PrairieSky expands its landholdings.

Best of all, the company sends out these cheques monthly, so you don’t have to wait to start cashing in. The next round of distributions are scheduled to be mailed out in a few weeks. If you become a partner by September 26, you’ll be eligible to collect your first royalty cheque on October 15.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robert Baillieul has no position in any stocks mentioned.

More on Investing

Bank sign on traditional europe building facade
Bank Stocks

Are Canadian Bank Stocks Still Undervalued?

Bank stock are moving higher. Is it time to buy or wait?

Read more »

You Should Know This
Stocks for Beginners

5 Things to Know About Cargojet Stock in November 2022

Cargojet (TSX:CJT) stock should continue to see massive growth in the near and long term, thanks to long-term agreements and…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

Better Buy: BCE Stock or Enbridge?

BCE and Enbridge pay growing dividends with high yields. Is one more attractive today?

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Investing

TFSA: 3 TSX Stocks to Buy With the New $6,500 Room Limit

Canadians who are eager to utilize the new $6,500 room limit in 2023 should look to TSX stocks like Aritzia…

Read more »

Financial technology concept.
Investing

The Smartest Stocks to Buy With $20 Right Now and Hold Forever

Given the favourable market conditions and their growth initiatives, these three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

2 Unstoppable Dividend Stocks to Load Up in Your TFSA

These two dividend stocks provide long-term passive income that comes out every month, thanks to lease agreements lasting over a…

Read more »

Doctor talking to a patient in the corridor of a hospital.
Tech Stocks

3 Healthcare Stocks to Buy for Long-Term Passive Income

Healthcare stocks provide exposure to an essential service sector. They are also the best for passive income in the short…

Read more »

potted green plant grows up in arrow shape
Investing

4 TSX Growth Stocks to Buy and Hold Forever

Here's why TSX growth stocks, and these four stocks specifically, are some of the best investments you can buy in…

Read more »