ExxonMobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS.A), and BP (BP) have consistently given returns to shareholders in the form of dividends. In this sense, comparing these firms on a dividend yield parameter becomes vital. Remember, the dividend yield is estimated as a ratio of the annualized dividends to the price of a stock.
Shell has the highest dividend yield among our group of four select integrated energy stocks, standing at 7.1%. Just behind Shell is BP, with a 7% yield. ExxonMobil (XOM) has the lowest yield among the four stocks at 3.6%. Chevron’s dividend yield stands at 4%.
For exposure to high dividend stocks, you might consider the iShares Core High Dividend ETF (HDV), which has ~16% exposure to energy sector stocks, including XOM and CVX.
Continue to the next part for an analysis of these four integrated energy stocks’ forward valuations.