Equinor’s dividend yield
Equinor (EQNR) ranks fifth on our list of top eight dividend-yielding integrated energy stocks. The company’s market cap of ~$88.0 billion places it sixth among its peers.
Equinor has a current dividend yield of 4.3%. In the current quarter, Equinor paid a dividend of $0.23 per share (or ADR). EQNR has consistently paid dividends in the past three years despite the volatility of oil prices. Its dividends have risen marginally during this period.
Three years ago, EQNR made a quarterly dividend payment of 1.8 Norwegian kroner per share (~$0.22 per share). In the past three years, Equinor stock has risen 82.0%.
Equinor (EQNR) trades at a forward PE (price-to-earnings) multiple of 11.9x, below the average forward PE multiple of 12.4x. EQNR also trades at a 3.4x forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple, which is below the peer average of 5.1x. In our view, the company trades below the peer average due to its below-average growth estimates for 2018 and above-average debt in its capital structure.
Wall Street analysts expect EQNR’s earnings to grow 44.0% YoY (year-over-year) in 2018. The average growth of its peers stands at 57.0% YoY in 2018. Equinor’s total-debt-to-total-capital ratio is higher than the industry average.
Equinor provides a lower dividend yield with a lower forward PE multiple. However, Royal Dutch Shell (RDS.A) and ENI (E), which we discussed earlier in this series, provide relatively higher dividend yields with lower forward PE multiples. BP (BP), which stands at the top of our list, offers the highest dividend yield with average valuation.
Please continue to the next part to learn about ExxonMobil’s dividend yield and valuations.