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May
14
Jonathan Yates
Total SA Offers Global Exposure for Income and Value Investors
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For investors looking for blue chip energy companies with a strong dividend that have not soared along with the rest of the stock market, Total SA (NYSE: TOT), the French oil and natural gas giant, is down 1.13% for 2013.

Now trading around $50 a share, the mean analyst target price for Total SA over the next year of market action is $58.23.  Total SA is trading close to its 52-week high of $54.48, at present.   As the technical indicators on the chart below show, there is still plenty of upside for Total SA as volume has still been light in recent trading with bullish candlestick patterns.

 

With a dividend yield of 5.41%, Total SA pays shareholders to wait for the stock price to catch up to the income component.  Total SA’s dividend is more than twice the average for a Standard & Poor’s 500 member company.  The dividend payout ratio is still low enough to allow for increases and stock buybacks to enhance shareholder value.

Total SA has a reputation for being a very aggressive oil company.  With sales of over $233 billion, it is certainly “Big Oil.”  The market cap is around $120 billion. It has oil and natural gas operations around the world.

There is certainly an appeal to value and income investors from Total SA.  The dividend yield of 5.41% tops the 2.77% offered by Exxon Mobil (NYSE: XOM), the world’s largest oil company.  For value investors, Exxon Mobil sells at a price-to-sales ratio of 0.90.

For Total SA, the price-to-sales ratio is 0.52.

That means that the sales of Total SA are only valued barely half the worth in the share price.  The price-to-sales ratio of Exxon Mobil is almost twice that of Total SA.   For value investors in the energy sector, that is very alluring.



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