Energy Business

Back Up the Truck for Big Dividend Energy Stocks as Oil Drops Below $80 a Barrel

Shell also converts natural gas to liquids to provide fuels and other products; markets and trades crude oil and natural gas; transports oil; liquefies and transports gas; extracts bitumen from mined oil sands and converts it to synthetic crude oil; and generates electricity from wind energy.

In addition, the company engages in the conversion of crude oil into a range of refined products, including gasoline, diesel, heating oil, aviation fuel, marine fuel, liquefied natural gas for transport, lubricants, bitumen and sulphur; production and sale of petrochemicals for industrial customers; refining; trading and supply; pipelines and marketing; and alternative energy businesses.

The dividend yield is 3.71%. BofA Securities has set a $63 price objective. The $59.07 consensus target on Royal Dutch Shell stock compares with the most recent close at $45.28.

TotalEnergies

This French integrated giant is another great way to play the energy rally from the European side. TotalEnergies S.E. (NYSE: TTE) operates as an integrated oil and gas company worldwide. Its Exploration & Production segment is involved in oil and natural gas exploration and production activities in approximately 50 countries.

The company’s Integrated Gas, Renewables & Power segment engages in the LNG production, shipping, trading and regasification activities; trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas and electricity; transportation of natural gas; electricity production from natural gas, wind, solar, hydroelectric and biogas sources; energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services.

The Refining & Chemicals segment is involved in refining petrochemicals, including olefins and aromatics; and polymer derivatives, such as polyethylene, polypropylene, polystyrene and hydrocarbon resins, as well as biomass conversion and elastomer processing. This segment also engages in trading and shipping crude oil and petroleum products.

The Marketing & Services segment produces and sells lubricants; supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG and bitumen; and provides fuel payment solutions. It operates approximately 15,500 service stations.

Investors receive a 5.18% dividend. Piper Sandler has a $66 price target. The posted consensus target is $59.38, and TotalEnergies stock closed trading at $49.78 on Monday.


These five mega-cap integrated leaders pay very solid dividends and have some serious upside to their various price targets. Plus, they all dominate in their geographical locations, and perhaps they offer more safety for investors with less risk tolerance. One caveat for investors considering the European ideas is that many foreign governments automatically withhold taxes on dividends paid by companies incorporated within their borders. For most taxable accounts, this means that a certain percentage of your dividend will be withheld by your broker.

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