Penn Virginia has been one of my favorite companies for a while, and it's a company that I have written about a lot over the years. Oddly enough, I've never actually pulled the trigger and owned it in my own portfolio. Maybe soon, though...
Say you want to invest a portion of your portfolio in coal, America's dominant energy source for electricity, but you also want to get a hefty stream of income from that investment. Unfortunately for dividend-seeking investors, the leading names in the coal industry like Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI) and Massey Energy Co. (NYSE:MEE) do not pay especially large dividends. What do you do?
Well, you could try to buy a share in a coal mine lease, but that is quite frankly not an option for most regular people. You could also pursue a covered call writing strategy, but that may be a bit too much work for some investors. Or, you could also just buy the shares of a royalty partnership like Penn Virginia Resources (NYSE:PVR).
http://stocks.investopedia.com/stock-analysis/2010/Penn-Virginia-Turning-Coal-Into-Cash-PVR-BTU-ACI-MEE-RRC-EOG-ARLP-NRP0512.aspx
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