Monthly Dividend Stock In Focus: Permianville Royalty Trust

Updated on May 9th, 2026 by Josh Arnold

Income investors looking to buy oil and gas stocks may want to gain exposure to the Permian and Haynesville Basins. Permianville Royalty Trust (PVL) is an oil and gas producer with properties in these two oil and gas-producing areas.

The trust also pays a monthly dividend. There are 119 monthly dividend stocks. You can see the full list of monthly dividend stocks (plus important financial metrics such as payout ratios and dividend yields) by clicking on the link below:

The coronavirus crisis severely damaged Permianville. In 2020, the pandemic caused the oil price to collapse, so Permianville suspended its dividend for 13 consecutive months, from mid-2020 to mid-2021.

Fortunately for the trust, oil and gas prices recovered strongly from the pandemic in 2021 thanks to the massive distribution of vaccines and the immense fiscal stimulus packages offered by most governments. As a result, Permianville reinstated its dividend in August 2021 and thus returned to the group of monthly dividend stocks.

Even better for the trust, oil and gas prices rallied to a 13-year high in 2023 thanks to the strict sanctions imposed by Western countries on Russia for its invasion of Ukraine. As a result, Permianville achieved an 8-year high distributable cash flow per unit in 2023.

The trust had suspended its dividend in 2025 until it declared a special dividend of $0.0085 for April.

Therefore, investors should remember that oil and gas royalty trusts are especially risky, and only investors with a high-risk tolerance should consider purchasing Permianville. Adding to the risk of owning it, the stock trades with a market cap of just $63 million, making ti one of the smallest companies we cover.

Business Overview

Permianville Royalty Trust is a statutory trust formed in 2011 to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from properties in Texas, Louisiana, and New Mexico, as well as the Permian and Haynesville basins.

The trust can receive 80% of the net profits from selling oil and natural gas production from its properties. After all obligations and expenses are paid, unitholders receive the remaining proceeds each month. The trust is not subject to any preset termination provisions.

However, the trust could dissolve if at least 75% of outstanding units vote in favor of dissolution, or the annual cash proceeds received by the trust are less than $2 million for each of any two consecutive years.

Permianville came under great pressure in 2020 due to the coronavirus crisis. Fortunately, the trust, along with the broader energy market, recovered strongly from the pandemic in 2021.

Thanks to the sanctions imposed by the U.S. and Europe on Russia for its invasion of Ukraine, the global oil and gas markets became extremely tight in 2024. Before the sanctions, Russia produced about 10% of global oil output and one-third of the natural gas consumed in Europe. Due to the sanctions, oil and gas prices rallied to 13-year highs in 2022. This tailwind gave Permianville an 8-year high annual distribution of $0.44 in 2022. That distribution would produce a staggering 23%% yield at the current stock price. But shares have come down from their high well over $5 at that time to less than $2 today, and the stock yields just 6.4% on much lower distributions.

Permianville posted fourth quarter and full-year earnings  on March 23rd, 2026, and results were weak once again. The trust posted gas volumes that rose 16%, but oil volumes plummeted 31% year-over-year. In addition, realized prices were terrible, with oil and gas prices off 19% and 27% year-over-year, respectively. Total distributions were up from nine cents to 13 cents, however, which was credited to lower operating expenses.

The trust suspended distributions in the first half of 2024 but then promptly resumed, only to pause it again. This on-and-off nature of distributions highlights the risks of owning an oil and gas trust, particularly if one relies on the income for living expenses. Interestingly, the war in Iran in 2026 hasn’t seen the share budge really at all, suggesting no meaningful tailwind despite years-high oil and gas prices.

We expect 12 cents in distributable earnings, and for all of it to be distributed via dividends. Should that come to fruition, the stock currently yields about 6.4%.

Growth Prospects

Royalty trusts are designed as income vehicles for unitholders. However, since these companies operate in the energy industry’s production segment, they are extremely reliant on the price of the underlying commodity.

Therefore, while higher energy prices will generally lead to higher royalty payments and a rising share price, the opposite occurs when commodity prices decline. Lower energy prices lead to lower dividend payments and a dropping share price for royalty trusts.

Distributions are based on the price of natural gas and crude oil, and when the cost of either declines, Permianville is impacted in two ways.

First, distributable income from royalties is reduced, lowering dividend payments. In addition, plans for exploration and development may be delayed or canceled, which could lead to future dividend cuts.

Permianville currently enjoys a favorable business environment thanks to very high oil prices. However, it is prudent to expect oil and gas prices, infamous for their dramatic cycles, to deflate in the long run.

Due to the global energy crisis caused by the war in Iran and other factors, a record number of renewable energy projects are currently under development. When all these projects come online, they will probably take their toll on oil and gas prices. In such a case, Permianville is likely to have significant downside risk. The fact that shares are no higher than they were when oil was $60 per barrel should be telling for investors in terms of potential upside, and indeed risk.

Dividend Analysis

Permianville has suspended its distribution multiple times in the past several years, highlighting the inherent riskiness of its business. Oil prices are at a four-year high and the trust’s earnings aren’t particularly good, and its distribution remains low.

Most royalty trusts, such as Permian Basin Royalty Trust and Sabine Royalty Trust, resumed paying dividends after a few months. However, Permianville suspended its dividend for 13 consecutive months, the longest absence of dividend payments among the well-known oil and gas trusts.

With prices rising, Permianville is currently still offering a much lower yield than it typically does, which makes holding the name less attractive due to the increased risks regarding its business. Our expected yield of 6.4% is high in comparison to most stocks, but when accounting for the massive risk the distribution faces on a regular basis, it’s not overly attractive.

Overall, the trust is ideal for those who are confident in higher future oil prices and want to gain exposure to the oil boom in the Permian and Haynesville basins. The trust is much more leveraged to the price of oil than the integrated oil companies, and hence it should have much more upside in the positive scenario (higher oil and gas prices) and much more downside in the event of a downturn in the energy sector.

On the other hand, like the other oil and gas royalty trusts, Permianville will have excessive downside risk whenever oil and gas prices enter their next downcycle. The trust will reduce or suspend its dividends while its stock price comes under great pressure. It is thus suitable only for risk-loving investors who are confident in excessive oil and gas prices in the future. We reiterate that Permianville should be performing extremely well with sky-high oil prices in 2026, but isn’t.

Final Thoughts

Royalty trusts like Permianville have faced a number of challenges in the past few years, including the weak oil price environment and the coronavirus pandemic, which suppressed global oil demand. That said, Permianville operates in the most prolific oil-producing area in the U.S., the Permian and Haynesville basins. It also thrives when oil and gas prices are elevated, such as when Western countries placed sanctions on Russia.

The current business environment appears favorable for Permianville, and another downturn in the energy sector is expected to show up in the upcoming years due to the cyclical nature of the oil and gas industry and the record number of clean energy projects that are under development right now. Due to the non-diversified business model of the trust and its dramatic reliance on the price of oil and gas, investors should not allocate a great portion of their portfolio to this stock. Frequent distribution cuts make it a sell-rated security in our view.

Moreover, the trust’s short history leaves much to be desired for investors seeking reasonable levels of dividend safety and consistency.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.