Natural resources investment expert Matt Badiali defines a Freedom Check as a “dividend that is paid by one of two types of companies, either a Master Limited Partnership or a Royalty Trust.” The definition of a Master Limited Partnership, MLP, is a partnership, publicly traded that has the liquidity of a publicly traded security but also has the tax benefit of a limited partnership. A Royalty Trust is defined as a trust that typically owns resources such as natural gas and oil. These resources have to be extracted by an outside firm. Read more about Freedom Checks at banyanhill.com.
He thinks they are a great avenue for investment for everyday average investors, but he has a list of things that an investor needs to keep in mind before choosing from one of the many Freedom Check providers. Matt’s first criteria for a Freedom Checks provider is that has assets to the value of no less than $1 billion. His second criteria is that an investor should only deal with companies that regularly pay out large sums to their investors. His third criteria is that you should only do business with providers that have the track record to back up your faith in them. These companies should be making their investors a lot of money. The last rule Matt Badiali has is that you need to see cold, hard evidence of the provider’s financials that are being claimed. Matt feels that if investors follow these rules, they will be able to identify good Freedom Check providers.
Requirements for this include a company needing to generate 90% of is revenue from processing, production, transportation and storage of a natural resource and pay out large checks to shareholders. Read this article at Money Morning.