Is it time to go long on oil (finally)?

As a dividend trader, one is wary when a dividend yield is in the double digits.  Logic tells you that it’s a desperate ploy to get investors hooked for short term income generation that will hopefully keep you invested long enough for some actual stock price movement to occur.  What’s even more worrisome is when a company trading around $9 announces a $0.40 dividend (going ex-dividend June 9th).  That’s a 17.78% dividend yield, a rarity some would say in the dividend sphere.  So, maybe it’s time to investigate?  $FRO is this gem of a bargain to take advantage of.  An oil tanker company that’s been hit extremely hard from oil prices, their stock price dropped over 80% in February and has yet to break $9.50 since the drop.  Pictured below is the most recent trend setting close from June 3rd, with an amazing entry opportunity present at this $9 ceiling.  I myself am very wary of the oil markets, but with talks from OPEC seemingly calming the markets, we’re starting to see continual uptick in oil prices (for however long it will last).  With an opportunity like this, very few would pass this up.  As a dividend trader, I hate the idea of going long on a stock unless I’m restructuring my portfolio or covering for losses by buying more shares to garner more dividend payouts to balance, but this is going to be my first long term play in my trading career.  Hopefully Saudi Arabia’s most recent “Economic Plan” to garner more economic security from other assets besides oil won’t disrupt the markets at open in the morning.