If you like smaller oil stocks with a big dividend, I recommend Seadrill (NYSE:SDRL), an offshore drilling contractor with a nearly $19 billion market cap. Its dividend is a bit volatile and unreliable, but adding up the last four paydays produces an 8.8% yield based on current prices.
Furthermore, revenue is slowly creeping up and earnings per share are much more stable. The dividend payout ratio is admittedly a concern since it’s pushing above total earnings per share this fiscal year, and there’s a risk that distributions might roll back if earnings don’t keep pace. But you could take a 40% haircut on your dividends and still enjoy a yield over 5% in SDRL stock. Seadrill is up about 8% year-to-date in 2013.
Unlike a lot of speculative small caps, Seadrill is both big enough to be entrenched and agile enough to ramp up growth in a good environment.