Finding an oil stock at a low price can yield a nice profit if the stock increases in value. Finding an oil stock that pays a dividend is like an extra bonus. The steady stream of income offered by the dividend payment is something that many investors desire. The best oil dividend stocks represent stable companies and consistently pay high dividends.
Numerous stocks within the oil and gas pipelines sector meet these standards. Sunoco Logistics Partners L.P. has a 6.11 percent dividend yield and currently trades at $74.65 per share. DCP Midstream Partners L.P. is currently trading at $32.20 and has a 7.58 percent dividend yield. Investors looking for stocks priced at around $20.00 per share should check out Spectra Energy. It is currently trading at $20.98 per share and has a 4.77 percent dividend yield.
Investors who are looking for monthly dividend payments should consider Pengrowth Energy Trust. This is a high-yielding Canadian oil royalty income trust. The trust owns and operates interests in Canadian natural gas and oil properties. The stock currently trades at $9.68 per share and has a yield of 8.22 percent.
A royalty trust tends to offer high yields so it can be a smart investment. The royalty trust pays out almost all of its gas and oil production income to investors as the company liquidates reserves. Royalty trusts like BP Prudhoe Bay, Permian Basin, Santa Fe Energy, and San Juan Basin each have high yields.
The income of these trusts is dependent on oil prices, so the share price can fluctuate sharply with the price of the commodity. A conservative investor should wait for some steadying in the market prior to making an investment. There is money to be made from dividend-paying oil stocks, whether they be the major oil companies, oil and gas pipelines, or oil royalty trusts.
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