Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Investors seeking income in the energy sector have often sought out large-cap, dividend-paying stocks like Exxon Mobil Corporation (XOM) or Chevron Corporation (CVX). These are great companies, and both have a solid track record in paying and raising dividends. However, both stocks have seen yields drop with a rise in their stock prices - Exxon now yields just 2.5%, and Chevron yields 3.1%.

The combination of a high stock price and lower yields means the potential for returns from these stocks might be limited at best. Owning a stock that pays just 2.6% does not make as much sense, since a stock could easily drop 3% or more in a single day on some bad news. Let's not forget that Exxon missed earnings last quarter and the stock dropped on that news.

This is why investors should consider "second-tier" energy stocks that are not as well known, but offer much higher yields. These types of stocks can yield much more and that higher payout makes the risk of owning stocks more sensible. Here is a closer look at one stock that could be poised to outperform energy stocks like Exxon and Chevron: READ FULL ARTICLE HERE