Comparing The 5-Year Performance Of 6 Large-Cap Oil Stocks

Includes: BP, CVX, RDS.A, RDS.B, TOT, XOM
by: David Hunkar

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
1 BP Plc BP 3.82% 139.1 UK -18%
2 Chevron CVX 3.03% 213.2 USA 82%
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%
5 Total SA TOT 6.26% 116.2 France -2%
6 ExxonMobil XOM 2.36% 382.1 USA 21%

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