Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

BP plc (ADR) (BP), TOTAL S.A. (ADR) (TOT), Royal Dutch Shell plc (ADR) (RDS.A): European Oil Stocks Are a Haven For Income Seekers

It shouldn’t be a surprise to anyone that Big Oil is big business, and while most investors likely know the usual suspects among the U.S.-based energy giants, European peers may have more to offer investors.

That’s because as opposed to their American counterparts, European energy giants are willing to send their shareholders larger portions of their profits, in the form of heftier dividend yields. If you’re an investor who craves income, these energy titans may have more for you than the U.S. oil majors.

BP plc (ADR) (NYSE:BP)

Huge yields from across the pond
Whereas most U.S.-based oil companies pay between 3% and 4% dividend yields, you can secure much higher distributions from international competitors.

For instance, London-based BP plc (ADR) (NYSE:BP) has had its stock price weighed down for obvious reasons over the past few years. The company is still battling the financial and environmental devastation caused by the infamous 2010 spill in the Gulf of Mexico.

It’s true that BP plc (ADR) (NYSE:BP)’s profits have been adversely affected by the spill, and likely will be for the foreseeable future. At the same time, BP plc (ADR) (NYSE:BP) has shed assets in preparation for this—divesting $38 billion in all—leaving the company with financial cushioning as well as a more focused, stronger set of assets.

Moreover, the company is proceeding full-speed ahead with new growth initiatives, including major exploration finds in India and the acquisition of new acreage in Norway, Brazil, and China. All the while, BP has increased its dividend at strong rates since it resumed dividend payments in 2011, and thanks to its suppressed share price, BP plc (ADR) (NYSE:BP)’s yield is now 5.25%.

If you’re interested in high-yielding European oil majors that don’t share BP plc (ADR) (NYSE:BP)’s enhanced headline risk, you should consider TOTAL S.A. (ADR) (NYSE:TOT) or Royal Dutch Shell plc (ADR) (NYSE:RDS.A). Both France-based Total and Netherlands-based Royal Dutch Shell plc (ADR) (NYSE:RDS.A) pay 5% dividends to shareholders.  And, both stocks have proven a track record of consistent profitability and have increased their dividends on a regular basis.

TOTAL S.A. (ADR) (NYSE:TOT)’s second-quarter profits slipped 3%, as a result of weak oil and gas prices. On the other hand, oil prices have spiked in recent weeks due to ongoing geopolitical tensions in Syria and elsewhere, meaning TOTAL S.A. (ADR) (NYSE:TOT) may be on the cusp of increased profitability.  Furthermore, Total management points to several initiatives for investors to be optimistic about going forward. This year, the company secured a number of projects aligned with its long-term growth plans, including new developments in Africa and Australia.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.