The energy sector is getting a lot of attention lately as a safe haven that is benefiting from record global demand and supply disruptions, asserts Bryan Perry, editor of Cash Machine.

For high-yield dividend investors, I’ve recently added Royal Dutch Shell Class B (RDS.B) to my Safe Haven Portfolio. As an integrated oil company, Royal Dutch explores for oil, refines oil into gasoline, diesel, jet fuel, lubricants and solvents, and transports and stores crude and natural gas.

The stock pays a hefty 5.2% dividend yield and provides for an excellent inflation hedge for income investors seeking rock-solid dividend yields in a sector where the fundamentals have vastly improved over the past year.

Additionally, Royal Dutch does business in euros, which have been greatly devalued against most other developed currencies, making for a strong foreign exchange tailwind that will only inflate profits.

The stock has been trading in a sideways pattern of late, consolidating gains from earlier this year. It’s my view that the stock will take out the 52-week high of $77 and make its way to $90 by the year's end.

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Second-quarter earnings are expected to spike by 267% to $1.58 per share from the same quarter a year ago. For the third quarter, earnings are forecast to jump by another 228%. These are the kind of year-over-year comparisons that get investors’ attention.

In the past year, Royal Dutch raised its annual dividend to $3.67 from $1.88 and I expect the company to continue to reward shareholders with further dividend increases in the quarters ahead.

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