Commodity prices can fluctuate wildly, especially when supply and demand get out of whack. However, the higher risk associated with that volatility can often yield a higher reward. That certainly seems to be the case for Phillips 66 Partners (NYSE: PSXP), BHP Billiton (NYSE: BHP), and Alliance Holdings GP (NASDAQ: AHGP), all of which offer investors attractive dividend yields. Here's why we think income-seekers should take a closer look at these high-yield commodity stocks.
Sean O'Reilly (Phillips 66 Partners): Finding a safe high-yield commodity stock has been easier said than done in recent years. Fortunately, there are still a few options for those who know where to look. One of them is the publicly traded master limited partnership (MLP) of Phillips 66 (NYSE: PSX): Phillips 66 Partners. The company owns and operates crude oil, petroleum, and natural gas liquid (NGL) pipelines and terminals (known in the industry as midstream assets) that primarily service Phillips 66 refineries. Phillips 66 Partners owns over 2,000 miles of pipelines in addition to 25 storage and terminal properties.
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Source: Fool.com