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Released on 12:01 AM, Wednesday, June 20th, 2012 ET

Pittsburgh, PA (SpeculatingStocks) - Whiting USA Trust I (NYSE:WHX) looks like it could be a great investment if you are looking to get into the petroleum field. The trust owns properties in areas including the Rocky Mountains and the Gulf Coast of the United States. WHX was formed by Whiting Petroleum Corporation to hold the net profit resulting from the profits given by the corporation. The interest in the net profits are the only assets of the trust, and the trust has rights to receive all but 10% of those profits.

With this income stream coming to the trust, it is no surprise that as a unit-holder—the trust's name for shareholder—you get a rather massive outlay. 16.90% per year in dividends paid at over approximately $0.72 per share every quarter. The trust also has an EPS of $3.00 per share, and a stock price of $17.75 per share (4:00 PM EDT, June 19th, 2012). Together the EPS and the stock price bring the P/E to approximately 5.92, fairly low for a company which earns $3.00 per share.

This trust as a stock however is not hard to predict where it is going to move. Just like every other company, the trust announces when it will release its next dividend; although in truth they release the stock on or near the 17th of February, May, August, and November almost every year. And for the past year, the stock has not largely deviated from its trading pattern—however--in the past WHX has reached as high as $24.23 per share. That being said, when the large dividends pay out, the stock's price tends to plummet; it seems simple enough. You could purchase just after the stock pays out its dividend, hold it until the record date, and sell. This way you reap the 2-3 dollar appreciation gain, and don't feel so much of the bite—there is also a focus of volume at these times. Lastly, because you sold after the record date, you still get the dividend, which is what you really want.

WHX as a stock would also be a great hold company, as you could just soak in the dividends with their low tax benefit, and hold the stock over a long-period of time, trading evenly or with a small amount of appreciation you are still returning at roughly 16.90% a year—although this isn't a guarantee it has been since mid-2008, in the early stages of WHX on the NYSE.

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