I bought into Black Stone Minerals ($BSM) a couple of months ago. While it is not a “growth”, the dividends provide a nice return. I look at them as a “defensive” component of my portfolio. Whatdaya think?
What they do & who they are:
Black Stone Minerals owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 16.8 million gross acres, and overriding royalty interests in 1.8 million gross acres located in 41 states in the United States. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.
Current price: $15.77 / share
Currently on track for paying a 12.35% dividend this year.
0 Net debt.
P/E (forward): 8.68
Market cap: $3.3B
The company hedges oil & gas, to provide predictable results. It is a “limited partnership”. I went deep at $15.00. I see the main risk is the price of oil/gas, but it seems like their active hedging of oil & gas mitigates a big downward movement.
Thoughts?
Leave a Reply