Tuesday, January 10, 2012

TOTAL S.A. - TOT

TOTAL SA, stock ticker TOT, is a France based international oil and gas company. TOT operates in more than 130 countries and engage in all aspects of the petroleum industry, including upstream operations [oil and gas exploration, development and production, liquefied natural gas] and downstream operations [refining, marketing and the trading and shipping of crude oil and petroleum products]. TOT produce base chemicals (i.e. fertilizers) and specialty chemicals for the industrial and consumer markets.

TOTAL has interests in the coal mining and power generation sectors. It is also active in solar-photovoltaic power. Their worldwide operations are conducted through four business segments: Upstream, Downstream, Corporate and Chemicals and operate various subsidiaries: Elf Aquitaine, Total Venezuela, Total E&P Nigeria SAS, and Total E&P USA, Inc. and many more.

I love TOT because of their solid $0.74 per share, current dividend yield of 5.76%, and their massive moat of cash on hand. In year's past TOT typically paid their shareholders a $1.38 to $1.61 dividend every 6 months. They have been issuing quarterly dividends since May 18th, 2011. TOT once sold for $89.37 on May 23rd, 2008 and is currently selling at $51.51 per share, so picking up some shares at this level would be a fantastic move for your Roth IRA stock portfolio. There is plenty of room to grow here and you must get in in order to reap the benefits of incremental stock increases. Keep in mind that shares of TOT have fallen recently due to resurging fears of the Euro-debt crisis, however this company is a proven winner and will brush off any short term bad news.

The reaction to Euro problems combined with down cycle on oil and gas make TOT a very compelling stock. TOT has great cash flow and should continue with their great dividend yield. In my opinion, they are best in class and while you are waiting for stock growth you are rewarded with a great dividend! Looking at the major oil companies TOT looks like a bargain basement deal. They are a worldwide mega company which will give you many years of gains and dividends a.k.a. FREE CASH!

Continue to spend your money wisely and certainly perform your due diligence. We all work so hard for our money and it's important to make smart decisions when investing for your future. Make each dollar count! Feel free to visit TOTAL SA's web page, here, and their Investor Relations page, here. Also, I have posted a few TOTAL videos from YouTube below for your viewing pleasure. Until next time, reinvest those dividends within a ROTH IRA and have a great day!


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