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Total’s Dividend Yield Is in the Middle of the Pack

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Total’s dividend yield

Total (TOT) occupies the fourth slot on the list of top eight dividend-yielding stocks. The company’s market cap of around $151 billion puts it in the fourth slot on the list of the eight companies being discussed in this series.

Total’s dividend yield currently stands at 5.1%. In 1Q18, Total announced its 2017 final quarterly dividend of 0.62 euros per share (or $0.76 per ADR at current exchange rates), which is expected to be paid on July 6, 2018, to ADR holders based on the exchange rate. Total has paid dividends consistently in the past three years. Three years back, Total’s interim dividend payment stood at 0.61 euros per share. In the same period, Total’s stock price has risen 16%.

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Valuations

Total trades at a forward PE of 12.6x, below the average forward PE of eight integrated energy stocks of 15.3x. Total also trades at 4.9x its forward EV-to-EBITDA, below the peer average of 5.3x. Total has a total debt-to-total-capital ratio of ~32%, higher than peers ExxonMobil (XOM), Chevron (CVX), and Royal Dutch Shell (RDS.A) who have ratios of ~18%, ~21%, and ~30%, respectively.

However, in 2017, Total has seen a rise in earnings resulting in an increase in its operating cashflows. Plus, TOT has also witnessed higher divestment inflows in 2017. Thus, with a rise in operating cash inflows and divestment proceeds, Total has seen a rise in its cash reserves. The company has also witnessed a drop in its net debt in 2017 over 2016. Plus, the company has been growing organically as well as inorganically to create a robust portfolio.

Total (TOT) is behind BP (BP), Royal Dutch Shell (RDS.A), ENI (E), and Total (TOT), which all have higher dividend yields. Also, except ENI, they also have lower forward PEs.

Move onto the next part to see which stock stands fifth in terms of dividend yield.

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