What does Canadian Royalty Trust (CANROY) mean?
A Canadian Royalty Trust is a corporate trust which invests in the oil, gas or mineral assets. It controls an operating company and operates through it or third parties. It gets back royalty and interest payments. You can buy and trade its units just like stocks. It is also known as CanRoy.
Futures Knowledge Explains Canadian Royalty Trust (CANROY)
In North America, Royalty Trusts have been a popular structure for doing business in oil, gas and other minerals. As earlier trusts’ profits were not taxed at high rates, their cash generation and dividend distribution used to higher. However the tax policy has since been revised. But Canadian Royalty Trusts remain an attractive alternative to traditional stocks.