Understanding TotalEnergies SE's Dividend History, Yield, and Growth Rates
TotalEnergies SE(TTE, Financial) recently announced a dividend of $0.81 per share, payable on 2023-10-12, with the ex-dividend date set for 2023-09-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into TotalEnergies SEs dividend performance and assess its sustainability.
What Does TotalEnergies SE Do?
TotalEnergies is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 6.8 billion cubic feet of natural gas per day. At end-2022, reserves stood at 10.2 billion barrels of oil equivalent, 56% of which are liquids. During 2021, it had LNG sales of 48.1 Mt. The company owns interests in refineries with capacity of nearly 2.0 million barrels a day, primarily in Europe, distributes refined products in 65 countries, and manufactures commodity and specialty chemicals. It also holds a 19% interest in Russian oil company Novatek. At year-end, its gross installed renewable power generation capacity was 16.8 GW.
A Glimpse at TotalEnergies SE's Dividend History
TotalEnergies SE has maintained a consistent dividend payment record since 1992. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down TotalEnergies SE's Dividend Yield and Growth
As of today, TotalEnergies SE currently has a 12-month trailing dividend yield of 4.46% and a 12-month forward dividend yield of 4.66%. This suggests an expectation of increase dividend payments over the next 12 months.
TotalEnergies SE's dividend yield of 4.46% is near a 10-year low and underperforms than 48.57 of global competitors in the Oil & Gas industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Over the past three years, TotalEnergies SE's annual dividend growth rate was 0.90%. Extended to a five-year horizon, this rate increased to 2.10% per year. And over the past decade, TotalEnergies SE's annual dividends per share growth rate stands at 1.50%.
Based on TotalEnergies SE's dividend yield and five-year growth rate, the 5-year yield on cost of TotalEnergies SE stock as of today is approximately 4.95%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, TotalEnergies SE's dividend payout ratio is 0.39.
TotalEnergies SE's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks TotalEnergies SE's profitability 7 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. TotalEnergies SE's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and TotalEnergies SE's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. TotalEnergies SE's revenue has increased by approximately 16.80% per year on average, a rate that outperforms than approximately 63.29% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, TotalEnergies SE's earnings increased by approximately 25.50% per year on average, a rate that outperforms than approximately 52.31% of global competitors.
Conclusion: Assessing TotalEnergies SE's Dividend Prospects
Given TotalEnergies SE's consistent dividend payment record, a decent growth rate, and a sustainable payout ratio, it appears to be a reliable dividend-paying stock. Its profitability rank and growth metrics further bolster this perspective. However, its relatively low dividend yield compared to industry peers may not make it a compelling choice for income investors. As always, potential investors should conduct their own due diligence before making investment decisions.
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