total energy (NYSE: TTE) A proven survivor in the oil sector. It is also an innovator and has begun incorporating electricity production into its energy mix. The current geopolitical tensions in Venezuela and elsewhere may cause some disruption to energy markets, but that won’t stop me from continuing to buy TotalEnergies stock.
Although some theorists claim that Wall Street is efficient, the reality is that it can be highly emotional in the short term. Recent events in Venezuela have highlighted this, with investors worried about what might happen to the oil market. However, despite the drama of current events, events affecting oil markets are actually not uncommon. Oil is a highly volatile commodity, not just some of the time, but all of the time.
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That’s one reason why most investors looking at the energy sector should probably choose the largest, most diversified companies. This basically means that integrated oil majors like Exxon Mobil, Chevron, shell, blood pressureand total energy. For me, TotalEnergies stands out.
Like its peers, TotalEnergies has exposure to the entire energy value chain, which helps mitigate the impact of volatile commodity prices. However, it has also been investing in power to further diversify its structure.
BP and Shell made similar pledges, but both backed away from their previous targets. BP and Shell cut their dividends to accommodate ambitious clean energy plans they later abandoned. TotalEnergies has made the same transition to clean energy without cutting its dividend. I’m a dividend investor, so TotalEnergies’ commitment to dividends (with regular increases) is right up my alley. The yield is a very attractive 5.6%.
For most investors, Exxon Mobil (yields 3%) or Chevron (yields 4.1%) will likely be solid energy choices, as both companies have decades of annual dividend growth. However, I’m willing to take some additional risk in order to achieve higher yields. Not only has TotalEnergies diversified by entering the power sector, but it also has a long history of operating successfully in markets that other energy companies have shunned, including an extensive presence in Africa.
The emerging market opportunities add to the appeal to me and highlight TotalEnergies’ ability to operate in a challenging political environment. I’m happily reinvesting my dividends, buying more TotalEnergies each quarter when the dividend is paid, even with the events going on in today’s energy markets.
