Dorchester Minerals LP (DMLP) Stock

Dorchester Minerals: Forward Yield Is Estimated At 10%

Investors in gold are excited on Tuesday as the spot price of the precious metal hit a recent high of $2,113.28 per ounce during a rally yesterday. The increasing price of gold is catching up to its current record high of $2,135.40 that was achieved in December 2023.

Dorchester Minerals, L.P. is a Master Limited Partnership that owns oil and natural gas properties and earns steady income without incurring operational costs. DMLP has expanded its asset base through acquisitions in Louisiana, New Mexico, and Texas, using portions of its equity without cash outlays.

Dorchester Minerals LP is an energy trust that leases out land to energy producers in exchange for royalties. DMLP owns properties in 28 states and can acquire new properties to increase its reserves. DMLP's revenues have been affected by lower oil and natural gas prices, but it still offers a high dividend yield of 13%.

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Dorchester Minerals has an asset-light business model that de-risks it from the boom-and-bust cycle of the energy sector. DMLP's high profitability and low valuation make it attractive for investors, particularly income-seekers. Dorchester Minerals' focus on returning free cash flow to unitholders provides an edge in beating the market.

Dorchester announced a Q1 2023 distribution of $0.989656 per unit, well above my expectations for $0.80 to $0.85 per unit. This was driven by increased production, particularly NPI production.