Petroleum & Resources Corporation: About What You'd Expect, But With A Nice Yield

Petroleum & Resources Corporation (NYSE: PEO) is backed by the same team that runs Adams Express Company (NYSE: ADX). The two are similar in many ways, most notably their management approach and impressively long operating histories. Obviously, though, PEO is focused on oil and resources. If you are looking for a long-term holding in this area that offers a notable yield, this closed-end fund, or CEF, should be on your watch list if it isn't already in your portfolio, even though it isn't perfect.Way back when...Like Adams Express, Petroleum & Resources traces its roots all the way to the Great Depression. That was a tough time to open up for business, but it's a testament to the fund's longevity and ability to withstand difficult markets. In other words, forget about the current rout in the oil sector, think back to gas lines and a time when OPEC actions elicited feelings of fear and rage. And that's just taking things back to the Jimmy Carter era, PEO is much older than even that.And through the various ups and downs of the energy markets, PEO has managed to survive. Will it survive again this time around? Obviously I can't promise that, but history suggests it will. That said, one of the things you need to note is that PEO, like its sister fund ADX, saw a new management team take over in 2013. Although this led to a notable pick up in portfolio turnover at Adams Express, it didn't change much at PEO (turnover was a touch under 20% in each of the... Read more

Older articles featuring PEO: