Updated on October 10th, 2025 by Bob Ciura
Oil and gas royalty trusts are currently providing exceptionally high distributions to investors, significantly surpassing the average dividend yield of approximately 1.2% found in the S&P 500. This trend has attracted many investors seeking higher returns.
To assist in your investment journey, we have compiled a comprehensive spreadsheet of high dividend stocks featuring yields of 5% or more. You can easily download the complete list of securities with 5%+ yields, along with essential financial metrics such as dividend yield and payout ratio, by clicking the link below:
In this article, we will explore the prospects of the seven highest-yielding royalty trusts.
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High-Yield Royalty Trust No. 7: Mesa Royalty Trust (MTR)
Mesa Royalty Trust, established in 1979 and based in Houston, Texas, holds overriding royalty interests in natural gas and oil properties located in the Hugoton field of Kansas and the San Juan Basin of New Mexico and Colorado. The Trust receives 11.44% of 90% of the net proceeds from production on these properties after operating and marketing costs, managed by third-party working interest owners.
In its Q2 results released on August 14th, 2025, Mesa Royalty Trust reported distributable income of $0.105 per unit before reserve adjustments, translating to $0.0946 per unit after adjustments, a decrease from $0.1125 a year earlier. The royalty income of $220,855 was solely from the San Juan Basin properties operated by Hilcorp, while the Hugoton and San Juan properties in Colorado generated no net proceeds due to costs exceeding revenues.
Excess production costs rose to $933,830, up from $793,838 at the end of 2024, which must be recovered before cash flow can resume. The company has an estimated earnings power of $0.80.
Click here to download our most recent Sure Analysis report on MTR (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 6: Permian Basin Royalty Trust (PBT)
Founded in 1980, the Permian Basin Royalty Trust is an oil and gas trust where approximately 55% of output is oil and 45% is gas, although 85% of revenues come from oil. The trust holds a 75% net overriding royalty interest in Waddell Ranch Properties and a 95% net overriding royalty interest in Texas Royalty Properties.
In mid-August, PBT reported its financial results for Q2 2025, revealing a significant drop in distributable income per unit from $0.18 to $0.05 due to decreased average realized prices of oil and gas. Despite a brief boost in distributions at the end of 2023, recent high operating expenses and low prices have led to further reductions.
Click here to download our most recent Sure Analysis report on Permian Basin Royalty Trust (PBT) (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 5: San Juan Basin Royalty Trust (SJT)
Established in 1980 by Southland Royalty Company, the San Juan Basin Royalty Trust (SJT) is primarily a gas trust, producing negligible oil. Its properties are located in northern New Mexico and are operated by Hilcorp San Juan, L.P. The trust has reported a royalty income of $6.9 million in 2024.
In mid-August, SJT reported a 30% surge in gas production and a 40% increase in gas prices compared to the previous year. However, due to significant capital expenses from drilling new wells, SJT has suspended distributions since May 2024, citing high operating costs and weak gas prices.
Click here to download our most recent Sure Analysis report on SJT (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 4: Permianville Royalty Trust (PVL)
Incorporated in 2011, Permianville Royalty Trust (PVL) operates as a statutory trust, owning a net profits interest that allows it to receive 80% of the net profits from oil and natural gas production across Texas, Louisiana, and New Mexico. The trust’s assets are static, with no new properties being added.
In mid-August, PVL reported a 47% decrease in oil volumes, while gas volumes grew by 25%. After suspending distributions due to high operating expenses, the trust reinstated them in August 2025, citing improved operating costs.
Click here to download our most recent Sure Analysis report on PVL (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 3: Sabine Royalty Trust (SBR)
Established in 1983 by Sabine Corporation, the Sabine Royalty Trust (SBR) has exceeded its initial expected reserve life of 9 to 10 years. The trust consists of royalty and mineral interests in producing properties across several states, with revenues roughly split between oil and gas.
In early August, SBR reported a 30% decrease in oil production and a 21% decrease in gas production compared to the previous year. The average realized price of oil also fell by 13%, leading to a 12% decline in distributable cash flow per unit. The outlook remains negative as OPEC plans to increase production.
Click here to download our most recent Sure Analysis report on SBR (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 2: Cross Timbers Royalty Trust (CRT)
Cross Timbers Royalty Trust, established in 1991 by XTO Energy, operates as an oil and gas trust with a balanced output of approximately 50% oil and 50% gas. Unitholders enjoy a 90% net profit interest in producing properties across Texas, Oklahoma, and New Mexico.
In mid-May, CRT reported a 4% increase in oil volumes and a 19% increase in gas volumes compared to the previous year. Despite a slight decrease in average realized prices, the distributable cash flow per unit grew by 12% due to higher volumes.
Click here to download our most recent Sure Analysis report on Cross Timbers Royalty Trust (CRT) (preview of page 1 of 3 shown below):
High-Yield Royalty Trust No. 1: PermRock Royalty Trust (PRT)
PermRock Royalty Trust, formed in late 2017 by Boaz Energy, focuses on the acquisition, development, and operation of oil and natural gas properties in the prolific Permian Basin. On May 14th, 2025, the trust reported net profits income of $1.71 million, up from $1.30 million in the prior year. Distributable income reached $1.47 million, a 31% increase from the previous year.
Click here to download our most recent Sure Analysis report on PermRock Royalty Trust (PRT) (preview of page 1 of 3 shown below):
On the surface, oil and gas royalty trusts appear attractive due to their higher yields compared to the S&P 500 average. However, investors should remain cautious, as oil and gas prices are notoriously volatile. The ideal time to invest in these trusts is during downturns in the energy sector when valuations may become more favorable.
For those interested in high-quality dividend growth stocks or other high-yield securities, the following Sure Dividend resources will be beneficial:
High-Yield Individual Security Research
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