In This Article:
Unveiling the Dividend Dynamics of TotalEnergies SE
TotalEnergies SE (NYSE:TTE) recently announced a dividend of $0.81 per share, payable on 2024-01-25, with the ex-dividend date set for 2023-12-28. 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 look into TotalEnergies SE's dividend performance and assess its sustainability.
Understanding TotalEnergies SE
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TotalEnergies SE 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 a 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.
TotalEnergies SE's Dividend Track Record
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.
Examining Dividend Yield and Growth
As of today, TotalEnergies SE currently has a 12-month trailing dividend yield of 4.51% and a 12-month forward dividend yield of 4.61%. This suggests an expectation of increased dividend payments over the next 12 months.
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 5.00%.
Assessing Dividend Sustainability
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 2023-09-30, TotalEnergies SE's dividend payout ratio is 0.39.