Commodity prices are notoriously volatile, which makes it harder for producers to maintain a steady dividend when they unexpectedly drop. That's why many of companies that operate in the sector look for ways to insulate themselves from that exposure, while others have opted for a more flexible dividend policy. That way these companies can offer investors the opportunity to collect a higher yield without taking on as much risk.
Three high-yield options that come with a lower risk profile are Terra Nitrogen Company (NYSE: TNH), ONEOK (NYSE: OKE), and BHP Billiton (NYSE: BHP). Here's why we think income-seekers should take a closer look at these three stocks.
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Source: Fool.com