Assessing the Sustainability and Prospects of TotalEnergies SE's Dividend
TotalEnergies SE (TTE, Financial) recently announced a dividend of $0.81 per share, payable on 2024-04-15, with the ex-dividend date set for 2024-03-18. 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.
What Does TotalEnergies SE Do?
TotalEnergies is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2023, it produced 1.6 million barrels of liquids and 5.0 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 2023, it had LNG sales of 44.3 metric tons. 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. At year-end, its gross installed renewable power generation capacity was 22.4 gigawatts.
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 4.61% and a 12-month forward dividend yield of 4.70%. 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 4.30%. Extended to a five-year horizon, this rate decreased to 2.00% per year. And over the past decade, TotalEnergies SE's annual dividends per share growth rate stands at 1.60%. 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 5.09%.
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 2023-12-31, TotalEnergies SE's dividend payout ratio is 0.36. 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 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of the 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 29.40% per year on average, a rate that outperforms approximately 76.81% of global competitors.
Engaging Conclusion: Reflecting on TotalEnergies SE's Dividend Profile
Reflecting on TotalEnergies SE's consistent dividend payments, its growth rate, payout ratio, and strong profitability and growth metrics, the company presents itself as a potentially attractive option for value investors seeking stable income. As the energy sector continues to navigate the complexities of market dynamics and energy transitions, TotalEnergies SE's integrated business model and commitment to expanding its renewable energy portfolio may offer a resilient dividend outlook. Will TotalEnergies SE continue to be a reliable source of dividends in the years to come? Only time will tell, but the current indicators certainly add a positive note to the investment thesis.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
