Texas Pacific Land Corporation

Texas Pacific Land is an unusual company that owns vast tracts of land in the Permian Basin, earning royalties from oil and gas produced on its acreage along with water and surface-use fees. It carries no drilling risk of its own, collecting payments as others extract resources, which makes for extraordinarily high margins and an asset-light model. The company has paid dividends for many years and periodically adds special payments when energy activity is strong. The regular yield is small, but the underlying royalty stream is highly profitable and lightly encumbered, supporting a strong dividend score. Its income can be lumpy, tied to commodity cycles, yet the land itself is a rare and durable asset.