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How Statoil’s Dividend Yield Stacks Up with Peers

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Mar. 15 2018, Updated 9:32 a.m. ET

Statoil’s dividend yield

Statoil (STO) occupies the sixth slot on the list of top eight dividend-yielding stocks. The company’s market cap of around $76 billion ranks sixth among the eight companies being discussed in this series.

Statoil has a current dividend yield of 3.8%. Statoil announced a dividend of $0.23 per share (or ADR), which was announced on February 7, 2018, and will be paid on or around May 30, 2018. STO has consistently paid dividends in the past three years despite oil price volatility. Dividends have stayed stable during the period. Three years back, STO made a quarterly dividend payment of 1.8 Norwegian krone per share (equivalent to almost $0.23 per share). In the past three years, Statoil stock has witnessed a 30% rise in its stock price.

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Valuations

STO trades at a forward PE of 14.9x, below the average forward PE of 15.3x of the eight integrated energy stocks being discussed in the series. STO also trades at 3.6x its forward EV-to-EBITDA, below the peer average of 5.5x. Statoil has the highest total debt-to-total capital ratio of 42% among the eight integrated energy stocks being discussed in this series. However, STO has seen a rise in its cash flow from operations in 2017. Thus, with production growth likely, in the scenario of higher oil prices, the company could witness a rise in earnings.

STO provides a lower dividend yield with a lower forward PE. However, ExxonMobil (XOM) provides a lower dividend yield compared to the top four stocks with higher forward PE. BP (BP), which stands at the top slot of this list, provides a higher dividend yield with lower valuations.

Move onto the next part to know about the dividend yield and valuation of Chevron (CVX).

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