These 3 European Oil Companies Yield Over 4%

Dividend-paying stocks provide an excellent way to generate income from a stock portfolio. What better way of generating income is there than holding high-yielding stocks of large, stable companies that produce something that everybody needs every day?

Apr 9, 2014 at 10:52AM

One of the best ways to derive income from your portfolio is by buying dividend-paying stocks. These stocks actually pay money to the people who own them instead of forcing their investors to rely on capital gains and selling off their assets to get money out of the stocks that they own. In addition, dividend-paying stocks offer a few advantages over bonds, which investors normally consider the income vehicle of choice.

First, dividend-paying stocks offer growth prospects that bonds do not. The only way to get capital gains out of bonds is to rely on interest rate declines because bond prices move inversely to interest rates. Second, in today's low interest rate environment many dividend-paying stocks offer much higher yields than do bonds. All of the stocks that this article will discuss fit into this category.

Finally, companies tend to increase the dividends they pay out whereas the interest rate payments on bonds remain stable. Thus, these stocks can do a much better job of helping you stay ahead of inflation. This article will discuss high-yielding European oil companies that could be good investments for the income-producing portion of your portfolio.

Statoil ASA
(NYSE:STO) is a large, multinational oil company headquartered in Norway. The company originally focused on developing the rich oil and gas deposits in the North Sea and on the Norwegian Continental Shelf, but it has since expanded to areas outside of Norway which include Brazil, Tanzania, West Africa, and North America. Today, more than 35% of its total oil and gas production comes from these areas.

Statoil formerly paid out its dividend once a year, but this year it has begun to pay out its dividend on a quarterly basis. This brings it in-line with many other oil companies as well as dividend-paying companies outside of the oil and gas sector. At the time of writing, shares of Statoil offer a dividend yield of 4.2%. 

One of the biggest opportunities for Statoil lies in unconventional oil and gas production plays such as the Bakken shale. Statoil first entered the Bakken in 2011 by purchasing Brigham Exploration, at the time one of the largest operators in the region. This acquisition gave Statoil control over Brigham's acreage in the play of roughly 330,000 net acres.

Statoil also acquired a significant amount of infrastructure as a result of this deal which included three operating oil facilities, seven operating saltwater disposal facilities, approximately seven hundred miles of pipeline, and ten unit trains. This infrastructure should assist Statoil in bringing the oil that it extracts from the Bakken to market in a cost-effective way which will allow the company to maximize its profits from the region. 

Statoil has long had the ambition of increasing its production level to 2,500 mboe per day from its current level of 1,940 mboe per day by 2020. Although the company has stopped speaking of this goal in the aggressive language that it previously used, Statoil will likely grow its production going forward, and this should result in profitability growth assuming that oil prices do not fall by enough to cancel out the cash flow increase from this new production. Statoil will likely raise its dividend going forward as this growth story plays out. 

Total S.A. (NYSE:TOT) is one of the largest oil and gas companies in the world. Total is headquartered in Paris, France but it has operations all over the world, including Brazil, Kazakhstan, the Middle East, and North America. The company also boasts one of the highest dividend yields out of any of the major oil companies, as it yielded 5.05% at the time of writing.

Total is bringing some new fields online this year and ramping up the production at others which should result in the company achieving higher production this year than it did last year. The company should see a production increase of approximately 4% this year. 

Screen Shot

Source: Total S.A.

As with Statoil, the start-up of these new fields should prove to be accretive to Total's cash flow. Total itself stated that it expects to grow its average daily production by 150,000 barrels this year and it expects this to increase its cash flow by $50 per day per barrel of oil. This cash flow growth could give the company room to increase its dividend going forward.

(NYSE:E) is an Italian multinational oil and gas company headquartered in Rome which has large operations in Mozambique, Libya, and the North Sea, among other places. Like the other companies here Eni pays out a large dividend, as it yields 6.07% at the time of writing.

One of Eni's biggest opportunities going forward is becoming a major supplier of liquefied natural gas to the resource-hungry markets of Asia. Eni will do this by developing the massive Mamba gas field, a massive natural gas field located off of the coast of Mozambique which contains approximately 90 trillion cubic feet of natural gas according to estimates. 

The Energy Information Agency expects the demand for natural gas in Asia to surge in the coming decades, with the region's OECD-member nations increasing their demand by an average of 1.3% annually and the region's non-OECD member states growing their demand by an average of 3.3% per year. This massive field has the perfect positioning for the company to ship natural gas to these markets and take advantage of this growth.

OPEC is absolutely terrified of this game-changer
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that’s almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company’s can’t-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we’re calling OPEC’s Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock… and join Buffett in his quest for a veritable LANDSLIDE of profits!


Daniel Gibbs has a long position in Statoil. His research firm, Powerhedge LLC, has a business relationship with a registered investment advisor whose clients may hold positions in any of the stocks mentioned. Powerhedge LLC has no positions in any stocks mentioned and is not a registered investment advisor. The Motley Fool recommends Statoil (ADR) and Total SA. (ADR). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.

Compare Brokers