Dividend-News
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Euro Oils Pay High Dividends From Global Profits
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Published Mon, 07 Mar 2011 14:00:42 -0500 on Seeking Alpha
Summary and Recommendation Buy recommendations Total (TOT), Statoil (STO) and Royal Dutch Shell (RDS-A) offer the highest current dividend yields in our large cap coverage supported by growing global businesses, strong financial positions and high rates of cash flow generation. McDep Ratios are among the lowest at 0.59, 0.64 and 0.77 respectively. Oil production is the most important contributor to present value at 67%, 63% and 55%. Strong demand with expanding economic activity and difficulties in expanding supply combine to keep oil price in an uptrend with six-year futures at $100 a barrel compared to the 40-week average of $88. Dividends were sustained handily during the financial panic of 2008 and its aftermath in part because financial strength is high as measured by low ratios of debt to present value estimated at 0.13, 0.21, and 0.19. Rising unlevered cash flow (Ebitda) would equal enterprise value (EV) in a short time,... Read more


