VOC Stock: Morgan Stanley Bullish on This 18%-Yielder
August 20, 2025
Reasons to Be Bullish on VOC Energy Trust
Today, I’m shining the income investing spotlight on VOC stock.
Crude oil prices have been facing pressure over just how much a global trade war could affect the economy. Slower economic growth generally results in lower demand for crude oil. In fact, one of the best indicators of economic trouble is reduced crude demand.
That’s because crude oil is used in virtually every corner of the economy; from trucking, to manufacturing, shipping, travel, and even electric power. (Source: “Oil and petroleum products explained,” U.S., Energy Information Administration, last accessed August 11, 2025.)
While crude oil prices are currently trading below $70.00 per barrel, the International Energy Agency expects world oil demand to continue growing until at least the end of this decade.
The Organization of the Petroleum Exporting Countries (OPEC) is a little more bullish on global demand. There is, OPEC claims, “no peak demand for oil on the horizon.” (Source: “OPEC boosts long-term oil demand outlook, driven by developing world growth,” Reuters, September 24, 2024.)
OPEC expects world oil demand to rise from around 102 million barrels per day (bpd) today to 118.9 million bpd by 2045 and hit 120.1 bpd by 2050.
That doesn’t necessarily mean that crude oil prices will hit $100.00 per barrel anytime soon, but as long as there is demand for crude and it’s being pulled from the ground, there will be reason to consider ultra-high-dividend-yielding oil and gas exploration and production (E&P) companies like VOC Energy Trust (NYSE:VOC).
VOC Energy Trust, which was formed by VOC Brazos Energy Partners, L.P., is an oil and gas E&P company that acquires and holds 80% of the net profits from the production and sale of interests in oil and natural gas properties in Kansas and Texas. (Source: “Form 10-K,” VOC Energy Trust, March 20, 2025.)
According to the most recent data, the company’s underlying properties had interest in 722 gross producing wells and included 80,935 gross acres.
VOC Energy Trust had proved reserves of approximately two million barrels of oil equivalent (MMBoe). This includes 1.87 million barrels of total proved crude oil and 1.18 million cubic feet (MMcf) of natural gas.
VOC Stock: A Distribution of $0.11/Unit
VOC stock’s quarterly dividend payout is based on the net cash proceeds available for distribution. As a result, that number will change every quarter based on supply/demand and the price of oil and natural gas.
In the second quarter, VOC Energy sold 115,025 barrels of oil at a price of $61.11. Natural gas sales totaled 52,215 Mcf at $3.72 per Mcf. This resulted in total proceeds of $7.22 million, with holders of VOC stock receiving a distribution of $1.87 million, or $0.11 per unit. This works out to an annual distribution of $0.51 per unit for a forward annual dividend yield of 18.1%. (Source: “VOC Energy Trust Announces Trust Quarterly Distribution,” VOC Energy Trust, July 17, 2025.)
Again, the distribution is variable; in May, VOC stock paid out a dividend of $0.13 per unit, following that up with $0.09 per unit in February. (Source: “Distribution History,” VOC Energy Trust, last accessed August 11, 2025.)
To be fair, part of the reason why VOC Energy Trust units have such a high yield is because VOC stock is facing pressure. Yield and unit/share price have an inverse relationship.
And VOC stock has not been on the winning side of history of late, trading down 36% year to date. On the plus side, VOC stock is up almost 11% since its April lows. That’s when President Donald Trump announced his list of global tariffs.
And this goes to show why it’s so important for income investors, especially those in the energy sector, to pay attention to more than just oil and gas prices. A unit or stock can rise and fall quickly on actions taken by OPEC, geopolitical tensions, Black Swan events, and even late-night social media posts from the White House.
Chart courtesy of StockCharts.com
The Lowdown on VOC Stock
VOC Energy Trust is an oil and gas E&P play with a large interest in the net proceeds from oil and natural gas properties in Kansas and Texas. It continues to generate a lot of cash, which allows it to provide VOC stockholders with a reliable quarterly payout. Some quarters are more prosperous than others, but that is to be expected in the energy sector. And of course, variable payouts are not right for every investor.
While VOC stock has taken a hit of late, some of the biggest names on Wall Street remain bullish on the company. Three of the biggest institutional holders in VOC stock are 180 Wealth Advisors, LLC, UBS Group AG, and Morgan Stanley. (Source: “Holders,” Yahoo! Finance, last accessed August 11, 2025.)
