We recently compiled a list of the 13 Cheap High Dividend Stocks To Invest In Now. In this article, we are going to take a look at where TotalEnergies SE (NYSE:TTE) stands against the other cheap high dividend stocks.
According to Deutsche Bank Wealth Management, the global economy in 2025 is expected to face some tough challenges, with growth forecasts looking modest – the US GDP at 2.0%, the Eurozone at 0.9%, and China at 4.2%. Inflation may persist due to higher fiscal spending and potential tariff hikes, which could limit central banks’ ability to lower interest rates. This could in turn lead to more market volatility. Productivity has been growing slowly, and in some cases, it has even declined, affecting long-term living standards. However, AI and new technologies could help drive productivity higher, though it will take time to see noticeable results.
Despite these challenges, 2025 will be about navigating turbulent times, with a clear gap between the high-tech, high-productivity US economy and Europe, which is lagging behind. Policy focus is shifting from monetary to fiscal, with China taking the lead on new initiatives. Stocks, especially in the United States, remain a strong opportunity for growth, while European equities offer potential despite economic struggles.
In Q4 2024, S&P Global reported that US domestic stocks saw a net dividend increase of $11.7 billion, which was lower than the $13.7 billion increase in the same quarter last year. Overall, dividend increases totaled $14.2 billion for the quarter, which was down from $17.5 billion in Q4 2023. For the entire year, dividends grew by $53.3 billion, a significant jump from the previous year’s $36.5 billion. On a per-share basis, the broader market’s dividends hit a record, growing by 6% to $19.81 per share. In Q4 last year, there were 635 dividend increases, which is a 10.2% decrease compared to the 707 increases in Q4 2023.
Over the past 12 months, total dividend increases amounted to $71.4 billion, up from $65.1 billion in the previous year. Interestingly, the number of companies cutting dividends decreased by 19.5% in Q4, with only 33 companies lowering their payouts, compared to 41 the year before. Here, we discuss some of the best cheap high dividend stocks.
Our Methodology
For this article, we used the Finviz stock screener to filter out stocks with dividend yields over 3% and P/E ratios under 15. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth, and being financially stable to steer clear of yield traps. The list below is ranked in ascending order of the dividend yield as of February 17. We have also mentioned the P/E ratios and hedge fund sentiment as of Q3 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
An industrial oil and gas plant, with stacks of pipes issuing steam into the sky.
TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 17
Dividend Yield as of February 17: 5.72%
P/E Ratio: 9.13
TotalEnergies SE (NYSE:TTE) is a global energy company that specializes in oil and natural gas exploration and production, liquefied natural gas, power generation, storage, and distribution, refining petrochemicals and specialty chemicals, and distributing petroleum products. On February 12, the company and Gujarat State Petroleum Corporation (GSPC) signed a 10-year agreement during India Energy Week in New Delhi. Starting in 2026, TotalEnergies will supply GSPC with 400,000 tons of LNG annually. The LNG will serve industrial customers, households, businesses, and CNG vehicles like auto-rickshaws.
In 2024, TotalEnergies SE (NYSE:TTE) made solid progress in growing its free cash flow across both oil & gas and integrated power. It kicked off production at five major projects, including Mero 2 and 3 in Brazil, Akpo West in Nigeria, Anchor in the US, and Fenix in Argentina. At the same time, it launched new oil projects in Suriname, Brazil, and Angola while pushing forward on oil development in Namibia. On the LNG and gas front, the company secured mid-term contracts with Azerbaijan for over 6 million tons per year and expanded its US gas business by acquiring dry gas assets in Texas.
Even with a weaker pricing environment compared to 2023, TTE pulled in $29.9 billion in funds from operations. To keep rewarding shareholders, the company paid out $7.4 billion in dividends and executed an $8 billion stock buyback in 2024, repurchasing $2 billion worth of shares each quarter. It is one of the best dividend stocks to watch.
Among the hedge funds tracked by Insider Monkey, 17 funds were long TotalEnergies SE (NYSE:TTE), compared to 18 funds in the last quarter. Arrowstreet Capital is a prominent stakeholder in the company, with 488,904 shares valued at over $35 million.
Overall TTE ranks 5th on our list of the cheap high dividend stocks to invest in now. While we acknowledge the potential of TTE as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
