ConocoPhillips (NYSE:COP)spun off its downstream (refining) operations back in 2012, which now trades as Phillips 66 (check out the value in refining). The stock is now a standalone exploration and production company. ConocoPhillips is nearing completion of its three-year portfolio optimization plan and is also finishing up $9.6 billion in asset sales to help fund its $15 billion capital expenditure plan, pay dividends of $3.5 billion and $5 billion in stock buybacks.
ConocoPhillips’ $15 billion CapEx plan is one of the highest among Supermajors, but it will play a key role in its reserve replacement target of over 100%. Around 60% of CapEx is planned for North America liquids-rich plays, including its acreage portfolios in the Eagle Ford Shale, Permian Basin and Bakken Shale. ConocoPhillips pays a robust dividend yield of 4.6%, but still well below Total’s.
Don’t be fooled
Total pays the most robust dividend yield among all the Supermajors. What’s more is that it has a very reasonable payout ratio, at only 48%.
Dividend payout ratio
The story gets even better. The stock is the cheapest among all Supermajors.
I like TOTAL S.A. (ADR) (NYSE:TOT)’s impressive dividend yield, especially when coupled with its “cheapness.” The stock should perform well on the back of a rebounding global economy and has over $21 billion in cash on hand, or $9.50 per share, giving it room to up its dividend over the interim.
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