Royal Dutch Shell plc (ADR) (RDS.A), BP plc (ADR) (BP): Which European Oil Major Is The Best Buy?

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) pays a hefty 5.25% dividend, which it increased last year.

While it’s true that BP plc (ADR) (NYSE:BP) had to cut its dividend shortly after the Gulf spill, that was due mostly from political pressure and had less to do with financial necessity. It should also be noted that BP plc (ADR) (NYSE:BP) has aggressively raised its shareholder payout in the years since. BP has raised its distribution twice since it resumed dividend payments, and now yields 5%.

Along with its peers, Total yields approximately 5% as well. Total’s steady production allowed it to increase its quarterly dividend by 3% in euros per share, year over year.

For investors looking for geographical diversification, modest valuations, and solid dividend yields in the energy sector, these companies may be a great place to look.

Investors looking for solid income in today’s market of low interest rates and rising stock prices can find a dividend haven in the form of European energy majors. Securing a 5% yield is hard to do these days, so these stocks may be especially attractive for investors looking to derive meaningful income from their stock investments.

Robert Ciura owns shares of BP p.l.c. (ADR). The Motley Fool recommends Total SA. (ADR).

The article Which European Oil Major Is The Best Buy? originally appeared on Fool.com.

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