05. TotalEnergies SE (NYSE:TTE)
Dividend Yield: 5.78%
Payout Ratio: 40.62%
TotalEnergies SE (NYSE:TTE) stands out as one of the most compelling dividend plays heading into 2025. With a solid dividend yield of 5.78% and a payout ratio of just 40.62%, the company not only offers attractive income but also maintains ample room for continued dividend growth. Combined with a forward P/E ratio of just 8.5, a conservative debt to equity ratio of 0.50, and consistent earnings power, TotalEnergies looks like a stock that can weather volatility and still thrive.
Despite a slightly lower than expected EPS of $1.83 in Q1 2025 (vs. $1.88 consensus), the fundamentals remain strong. CEO Patrick Pouyanné made it clear that TotalEnergies is navigating global uncertainty with a steady hand, supported by a decade long strategy focused on building a low cost, low emission oil and gas portfolio, while rapidly expanding into renewables and power.
The numbers back this up. The company grew total energy production by nearly 5% year over year in Q1, including a 4% rise in oil and gas production and 18% growth in electricity output. Even with inflationary pressures, operating costs remained under $5 per barrel, highlighting TotalEnergies’ operational efficiency.
Financially, the company delivered $4.2 billion in adjusted net income and $7 billion in cash flow from operations, with a 13.2% return on capital employed over the past 12 months. It also executed $2 billion in share buybacks and raised its interim dividend by 7.6% year over year, now even higher than pre COVID levels.
What really sets TotalEnergies SE (NYSE:TTE) apart is its balanced model. The company is growing in both hydrocarbons and renewables, offering investors resilience regardless of energy price trends. Recent strategic moves, like the launch of six new battery projects in Germany and the acquisition of renewable energy developer VSB, underscore its long term vision.
In short, TotalEnergies is well capitalized, diversified, and committed to delivering value. For income focused investors looking for strong fundamentals and growth potential, TotalEnergies SE (NYSE:TTE) checks all the boxes.