Crude oil prices have been volatile over the past few years. On Friday, the price rose $1.21 to reach $98.99 in New York. As fears of recession in the EU and the U.S. have decreased, the prices have jumped from $77.0 a barrel in early October to about $100 now.
Some investors hold the stocks of integrated oil majors in their long-term portfolios. So I wanted to check their performance in the past five years.
The following chart shows the 5-year equity returns based on just price appreciation of six major global oil companies:
Click to enlarge
Source: Google Finance
The table below shows the current dividends yield, market capitalization and the 5-year returns with dividends reinvested:
|S.No.||Company||Ticker||Dividend Yield as of Nov 12, 2011||Market Cap (in US $ Billions)||Country||5-year return with dividends reinvested|
|3||Royal Dutch Shell-A||RDS.A||4.75%||128.8||The Netherlands||30%|
|4||Royal Dutch Shell-B||RDS.B||4.62%||96.7||UK||30%|
The table data shows that dividend reinvestment has boosted the returns.While British oil giant BP Plc (NYSE:BP) and French major Total SA (NYSE:TOT) yielded negative returns, US-based Chevron (NYSE:CVX) was the best performer with a total return of about 82%. Chevron has performed much better than the widely held Exxon Mobil, the largest integrated oil company in the world. In addition, Chevron’s stock grew by about 145% over a 10-year period excluding dividends and Exxon Mobil (NYSE:XOM) only doubled in price. In summary, most of the oil majors have performed well in the past few years and they must be an integral part of a well-diversified portfolio.
Note: Data noted above are known to be accurate based on sources used. Please use your own due diligence before making any investment decisions.
Disclosure: No Positions