You won't believe how much this stock yields

Finding yield in this market is the financial equivalent of squeezing blood from stone. Unless, you look at British Petroleum.

The British oil giant raised its dividend and is now yielding 5.6 percent. That puts it well ahead of its larger rivals Exxon Mobil (which yields 2.9 percent) and Chevron (3.7 percent). To put it in perspective, the BP shares are yielding nearly two and a half times the benchmark U.S. Treasury 10-year note.

For those looking for income, the stock would seem to be a no-brainer.

But geopolitical concerns in Russia, coupled with the plunge in oil prices, have conspired to wreak havoc on the company's stock. Shares are down 12 percent year-to-date, far outweighing any benefit the dividend may offer.

But Gina Sanchez, founder of Chantico Global, says the fat dividend and the company's future prospects make BP attractive for long-term investors.

"They're definitely reeling some people in with this dividend," said Sanchez, a CNBC contributor. "BP is an excellent company."

Though oil prices are down, BP has been increasing its U.S. oil output, Sanchez notes. "Their margins are increasing," she said. "That's a great sign for the long-term. They're making all the right moves. Even though the oil industry itself has issues, BP is increasing their profitability and they're doing what they need to do."

The technicals, however, are not as encouraging, according to Ari Wald, head of technical analysis at Oppenheimer & Co. "The charts really can't get behind it in terms of capital appreciation," he said. "I would be staying away from it based on the charts."

With BP now trading below its 200-day moving average, Wald sees it as having broken its trend. Though he sees the stock as having some support around the $40 level, its 200-day moving average has turned downward over the past few months. He believes the support level may end up not holding.

"I like to trade in the direction of the long-term trend," he said. "That long-term trend is lower based on the slope of the stock's 200-day moving average… Looking at the next few months, that $40 might not hold. So all of a sudden, that 5 percent dividend quickly gets evaporated."

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