A Double-Digit Dividend Yield Could Be Coming to This U.S. Oil Stock

Dividend investors may have a difficult time finding attractive payouts in more popular growth sectors, such as technology and consumer discretionary stocks. And while utilities tend to payout nice dividends, rising inflation and interest rates would be decidedly bad for utility stock prices.

For dividend stocks that can also benefit from the economic reopening, investors may wish to look to two sectors: financials, and energy. Of the two, energy may present the greatest potential upside, along with the biggest potential dividends.

That's because of three factors: One, oil prices are climbing again, recently touching $70 on the back of improving demand and extreme discipline on the part of OPEC+ and shale operators. Second, the sector has fallen out of favor, having underperformed for the better part of the last decade, so the stocks are still cheap despite strong performance year-to-date. Third, the companies themselves have changed, and are now focused on disciplined production and cash flows, not growth at-all-costs.

Source Fool.com