Oil Energy Stocks Purchased For Passive Income

by Scott on July 21, 2008

Oil Pump on Interstate 5

photo credit: mrjoro

I’ve been researching several high yield stocks and chose two oil energy stocks that could be great sources of passive income for my portfolio. The criteria for selecting these stocks was based on the ability to generate consistent cash income on a monthly or quarterly basis. Two of these companies yield over 10% and will outperform my bank c.d. Since these are stocks, they are not fdic insured and can lose value. As part of my overall investment objective, I will not invest all of my cash in these three stocks. This week I decided to take some positions in Hugoton Royalty Trust (HGT), Dominion Resources Black Warrior Trust (DOM), and Pfizer (PFE).

Hugoton Royalty Trust (HGT) owns natural gas assets and currently yields 10.2%

Dominion Resources Black Warrior Trust (DOM) owns natural gas properties in Alabama and has a current yield of 11.4%

Pfizer (PFE) Huge drug company that has been beaten down and is on the list for income and potential price appreciation. Could this be a value play and a passive income opportunity? Current yield is 7.4%

If you have a high yield oil energy stock or other investment that has performed well in your portfolio, please let me know.

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{ 4 comments… read them below or add one }

1 passivefamilyincome July 21, 2008 at 7:45 pm

Scott – Love PFE! I also think GE and BAC are extremely attractive here. I also own HTE but will be looking at your other energy picks. I use to own FRO until it had a huge run up.

2 Blake @ youngdough July 25, 2008 at 11:57 am

Doing some research here is well worth it, as the crowds all seem to migrate to the same few giants when playing the oil field*Exxon*. I also own the oil shipper Frontline (FRO), but have scaled back some when my profits were up a healthy number. Still, I’m confident going forward (love those FAT payouts!).

I might check out DOM. I think natural gas is going to be solid for a longgg time.

3 Scott August 14, 2008 at 2:18 pm

@ PFI I’ll be sure to look at FRO. Thanks for the tip.

@Blake I’m looking forward to my first dividend payout from these stocks as well. Do you reinvest your dividends or take the payout in cash?

4 Blake@youngdough August 25, 2008 at 6:14 am


I actually wrote a post about this a little why ago – http://youngdough.com/2008/06/12/what-i-do-with-my-dividends/

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