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Total Has a Good Yield, Valuation, and Earnings Growth

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Dec. 4 2020, Updated 10:52 a.m. ET

Total’s dividend yield

Total (TOT) occupies the third position among the six dividend-yielding energy stocks discussed in this series. The company’s market cap of ~$150 billion makes it the fourth-largest stock among the six stocks.

Currently, Total’s dividend yield is 5.2%. In the current quarter, Total paid a dividend of 0.64 euros per share (or $0.73 per ADR). Total has paid dividends consistently in the past three years. And the dividends have risen during this period. Three years ago, Total’s dividend payment was 0.61 euros per share. During the same period, Total’s stock price has risen 25%.

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Valuations

Total trades at a forward PE ratio of 10.5x, which is below the peer average of 14.1x. Total also trades at an forwards EV-to-EBITDA multiple of 4.6x, which is below the peer average of 5.8x.

Analysts expect Total’s EPS to grow 5% YoY in 2019. On average, Total’s peers are expected to fall 6% in 2019.

The company’s debt position is improving. Total has a total debt-to-total capital ratio of ~31%, which is below the industry average of 36%. BP’s (BP) ratio was 39% in 2018.

Overall, Total seems well placed with a higher dividend yield, lower valuation, and better earnings growth prospects for 2019. Royal Dutch Shell (RDS.A) also has the same traits but with an even higher yield.

Next, we’ll discuss ExxonMobil.

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