Changing with the times
Reuben Gregg Brewer (Total): Chevron is a great oil company, but there's one problem -- the world is shifting toward electricity. That change will likely take decades, but for those worried about the eventual demise of oil, France's Total is charting a slightly different course. Specifically, it has been buying its way into the electricity space.
Total isn't completely changing its stripes; it remains an oil company. What it's doing is diversifying its business into a new area today to ensure that it changes with the big-picture shifts taking place in the broader energy sector. For some investors that will sound like the more appropriate plan given the increasingly negative view of carbon-based fuels.
That said, there are other reasons to like Total. For example, it offers investors a 7.8% yield backed by a dividend that has increased or held steady for 35 consecutive years. And, perhaps more important today, Total stated during its second-quarter 2020 earnings conference call that it believes the current dividend is sustainable with oil as low as $40 or so per barrel. If you like the idea of investing in the energy patch while other investors are running scared, but want to hedge your bets just a little, Total could be the winning call for you.
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