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As we enter the third quarter, I wanted to take some time and examine three companies within the energy sector. Two of these companies are considered to be MLPs and the third is trust set up by none other than British Petroleum (NYSE:BP). My screen consisted of yields higher than 5% and average volatility fewer than 500,000 shares daily.

BP Prudhoe Bay Royalty Trust (NYSE:BPT) - BPT which trades in a 52-week range of $96.18 (52-week low) and $129.49 (52-week high), yields 9.1% ($10.57) and carries a P/E ratio of 12.46 making the stock an affordable option considering its dividend. Shares have risen nearly 4.5% during the last few trading sessions and could continue to demonstrate positive growth throughout the second half of the year. One of the things I like about BPT at these levels, and in general really, is the fact that when oil jumps, BPT's dividends increase considerably. Secondly, the trust is entitled to a 16.4% share of the first 90,000 barrels produced by its parent BP, at the North Slope, Alaska facility. Finally, the stock only trades about 87,000 shares per day which comes in under the 500,000 I used as part of the screen. Potential investors looking to establish a position in BPT should do so from an income standpoint and a medium sized position would be appropriate at current levels.

Plains All American Pipeline (NYSE:PAA) - PAA which trades in a 52-week range of $54.90 (52-week low) and $84.48 (52-week high), yields 5.2% ($4.18) and carries a P/E ratio of 16.41 making the stock an affordable option considering its dividend. Shares have risen nearly 4.1% during the last few trading sessions and could continue to demonstrate positive growth throughout the second half of the year. One of the things I like about PAA at these levels, and in general really, is the fact that the company is multi-faceted. Not only does the company transport crude oil, gasoline, and natural gas, it also stores various other types of energy resources. Secondly, PAA just expanded its credit facility from $850 million to $1.4 billion and extended the term by another year. The company's Vice President Charles Kingswell-Smith with regard to the credit facility expansion, noted "Furthermore, the increased size and amended terms of the facility support PAA's expanded activities related to the recent acquisition of BP's Canadian natural gas liquids business platform and will enhance PAA's ability to use its storage and related assets to capitalize on volatile market conditions in the crude oil sector". Finally, the stock only trades about 440,000 shares per day which comes in under the 500,000 I used as part of the screen. Potential investors looking to establish a position in PAA should do so from an income standpoint and a medium sized position would be appropriate at current levels.

Suburban Propane Partners (NYSE:SPH) - SPH which trades in a 52-week range of $34.58 (52-week low) and $53.23 (52-week high), yields 8.3% ($3.41) and carries a P/E ratio of 34.67 making the stock an affordable option considering its dividend. Shares have risen nearly 6.7% during the last few trading sessions and could continue to demonstrate positive growth throughout the second half of the year. One of the things I like about SPH at these levels, and in general really, is the fact that distributions have risen pretty nicely since 1997, and are up nearly 9.2% since May 2008. Secondly, the company is in the process of acquiring the retail propane business of Inergy, L.P. (NRGY), which will add more customers and a considerable amount of market to SPH. Finally, the stock only trades about 118,000 shares per day which comes in under the 500,000 I used as part of the screen. Potential investors looking to establish a position in SPH should do so from an income standpoint and a medium sized position would be appropriate at current levels.

Source: 3 Energy Stocks With Low Volatility Yielding At Least 5%