Earlier today, yields on 30-year Swiss government bonds dropped below zero. Earlier in the week, yields on German government bonds also fell below zero for the first time. Interest rates across the developed world are at record low levels. For income investors, dividend stocks are the best as they not only offer higher yields but also potential capital appreciation.
Northern Blizzard Resources Inc. (TSX: NBZ) is one such stock. Based in Calgary, Canada, Northern Blizzard is a crude oil production and development company focused on maximizing oil recovery from its heavy oil resource base. The company is engaged in the exploration for and the acquisition, development and production of petroleum and natural gas reserves in western Canada.
NBZ currently offers a dividend yield of 10.67%. The high yield also indicates that NBZ shares are significantly undervalued. This does not come as a surprise, considering that oil & gas stocks were hammered in 2014 and 2015 as prices crashed. But fundamentals for the oil market have improved recently so NBZ not only offers high yields but also potential capital appreciation.
On Wednesday, NBZ announced a dividend of $0.04 per common share for June 2016. The dividend will be payable on July 15, 2016 to shareholders of record on June 30, 2016.
