TotalEnergies: A Most Agreeable Dividend

Now, one observes a certain amount of fluttering in the dovecotes regarding the energy situation, what with this and that happening in Venezuela and elsewhere. A dashed nuisance, of course, but I find the current fuss rather overdone. One might even say, a bit thick. The point is, while others are busy wringing their hands, I’m rather calmly acquiring more shares of TotalEnergies (TTE +0.32%). A perfectly sensible course of action, wouldn’t you agree?

The Volatility of Petroleum – A Familiar Tune

The chaps on Wall Street, bless their hearts, occasionally convince themselves they’ve cracked the code of the market. A charming notion, but demonstrably untrue, as recent events have shown. This Venezuelan business, while causing a bit of a stir, is hardly unprecedented. Oil, you see, is a beast of a commodity, prone to fits of exuberance and gloomy spells. It’s not just occasionally temperamental; it’s always a bit of a handful. One must simply accept this as a fundamental truth, like the inevitability of rain on a Bank Holiday.

Consequently, a prudent investor in the energy sector ought to stick with the larger, more diversified companies. The sort of chaps who can weather a storm without capsizing. ExxonMobil, Chevron, Shell, BP, and, of course, TotalEnergies. But, if I may be so bold, TotalEnergies strikes me as a particularly good egg.

Why TotalEnergies Has Caught My Fancy

Like its peers, TotalEnergies has a finger in every pie, which is jolly good for smoothing out the bumps when the price of oil decides to do a jig. But, and here’s the clever bit, they’ve also started dabbling in electricity. A rather forward-thinking move, wouldn’t you say? Diversification, you see, is the name of the game.

BP and Shell had similar ideas, but seem to have lost their nerve, cutting their dividends to fund these grand schemes. A bit of a damp squib, really. TotalEnergies, however, has managed to have its cake and eat it too – expanding into electricity without sacrificing a perfectly respectable dividend. And as a chap who rather appreciates a regular income, I find that exceedingly agreeable. The yield, at a rather handsome 5.6%, is not to be sneezed at.

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The Unexpected Perk

For most investors, Exxon (3% yield) or Chevron (4.1%) will likely suffice, both having a long and admirable record of dividend increases. Perfectly sound choices, of course. But I, being a bit of a rogue, am willing to take a slight risk for a potentially greater reward. TotalEnergies isn’t just diversified with its electricity venture; it also has a knack for operating in markets that others avoid, particularly in Africa. A bit of a daring move, but one that I rather admire.

This emerging market opportunity adds a certain zest to the proceedings, and highlights TotalEnergies’ ability to navigate tricky political waters. I’m perfectly content to reinvest my dividends, acquiring more shares with each quarterly payment, even amidst all the current kerfuffle. A most agreeable arrangement, don’t you think? It’s simply a matter of spotting a good thing and sticking with it, even when the rest of the world is in a bit of a flap.

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2026-01-28 19:02