ADR Stocks, Sector Analysis, Top 100

3 High Yield Energy ADRs to Consider


Foreign energy stocks, or American Depositary Receipts (ADR), have been on the minds of many investors over the last two weeks. Some of the biggest foreign energy players posted quarterly earnings last week, including Total S.A. and BP.

Additionally, OPEC lowered its crude oil production by 890,000 barrels per day to 32.14 million from December to January. This highly anticipated report was released on Monday, and sent shares of several energy companies downward.

Energy companies have had a rocky road over the last couple years. As oil prices plummeted in 2014 and 2015, so did the shares of many energy companies, including the iShares Dow Jones US Energy Sector ETF (NYSE: IYE), which is down about 30% from its 2014 high.

Three of the biggest dividend paying energy ADRs are BP (NYSE: BP), Total S.A. (NYSE: TOT), and Royal Dutch Shell (RDS-A). For investors interested in these stocks, but can’t chose just one, there’s the RevenueShares ADR Fund ETF (NYSE: RTR), which has all three stocks as top holdings.

These stocks can be great dividend opportunities and are a great way to add international exposure to your portfolio. The stocks below all have dividend yields over 5%. That compares to some of the biggest U.S. players. including Exxon (NYSE: XOM), Chevron (NYSE: CVX), and ConocoPhillips (NYSE: COP), which have dividend yields of 3.6%, 3.8%, and 2.15%, respectively.

Royal Dutch Shell plc (ADR)  is a Netherlands-based oil and gas company and Europe’s largest oil company. The company reported lower earnings earlier this month, and also missed revenue estimates. Reporting earnings and dealing with the OPEC report weren’t the most exciting things to happen to Shell this month, though. The oil giant giant acquired one of the biggest energy companies in Europe BG Group in a  $50 billion deal.
Shell currently pays a quarterly dividend of $0.94 and has a dividend yield over 7%.Like many energy companies, Shell has been unable to increase its dividend since 2014. In the last twelve months, the stock is up 21%.
BP plc (ADR) is a London-based integrated oil and gas company. The company reported earnings last week, and disappointing analysts and investors. While BP reported lower profits and missed expectations, that is not what stuck in the minds of investors. The company’s annual earnings fell to their ten year low. For investors that are not following the stock, BP has not yet recovered from its massive oil spill in 2010.
The stock currently pays a quarterly dividend of $0.595. The company actually increased its dividend to $0.60 from $0.585 in 2015, but lowered it in late 2015. The stock offers a dividend yield of about 7%. In the last twelve months, BP is up about 16%.
Total SA (ADR) is a Paris-based oil and gas company that focuses on exploration and production. The company reported earnings last week, and although reported lower profits compared to last year, it beat analysts’ expectations.
The company’s quarterly dividend payout varies slightly each quarter, which is normal for a lot of ADRs. It’s last payout, which was in January, was $0.6485. It is likely that investors will know the fate of its next dividend next month. Still, by averaging its dividend payouts, TOT has a dividend yield over 5%. Its share price has increased about 18% in the last twelve months.

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