Dividends4Life: Are Big Dividend, Big Oil Stocks the Best Bet for Big Income?

For dividend income, it is tough to beat Big Oil stocks such as BP (BP_), ConocoPhillips (COP), and Royal Dutch Shell (RDS-B). What makes BP, ConocoPhillips, and Royal Dutch Shell even more attractive for long-term investors is how much more the stock prices fluctuate than the average for the market. As a result, patient investors should have the opportunity to buy when the share price is lower with the dividend yield that much higher.

Stocks with a high beta move more than the market as a whole, which has a beta of 1. When the share price drops, the dividend yield becomes that much higher. The beta for BP is 1.62. That means that the stock price moves 60% more for BP than the overall stock market. For Royal Dutch Shell, beta is 1.08. ConocoPhillips has a beta of 1.08. The dividend income component of BP, ConocoPhillips and Royal Dutch Shell really impresses. The dividend yield for BP is 4.73%. For Royal Dutch Shell, it is 4.64%. ConocoPhillips provides a stream of dividend income to its shareholders at a 4.09% rate.

Source: The Street

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