European Dividend Stocks to Buy: Total SA (TOT)
Dividend Yield: 5.1%
Next on the list is French oil major Total SA (TOT). Total raised some eyebrows last month as discussions progressed to develop Russia’s massive shale fields in partnership with Lukoil (LUKOY). It appears that, despite the ongoing threat of sanctions from the United States, business is going on as usual in the real world.
Total, like the rest of Big Oil, has had a rough run of late. With energy prices trading mostly sideways and with global economic growth tepid at best, revenue growth has been sluggish.
Yet at current prices, it would seem that investors are being a little too bearish. Total’s share price is still 23% below its old 2008 high, and the stock — at 1.5 times book value — trades at about half of its pre-crisis valuation.
Am I wildly enthusiastic about the business prospects for Big Oil in the year ahead? No, I’m not. But the sector seems to be pricing in the worst-case scenario, so any outcome other than a global recession or a total collapse in the price of oil should bode well for energy stocks.
Total yields an impressive 5.1% in dividends. And importantly, it’s also planning to authorize a large share repurchase in the next 18 months.