Last month we wrote in our newsletter: “At the moment, Total S.A. is a stock to be reconsidered based on the 5-year dividend growth number. In addition, competitor BP halves dividend as Covid-19 turmoil pushes this oil major to a huge loss of $16.8bn.”
Total SA declared the distribution of the second 2020 interim dividend at €0.66/share, which is stable compared to the first 2020 interim dividend.
Hence, the decision to sell Total and add German software giant and European Dividend Aristocrat SAP to our portfolio on August 31st, 2020. SAP has a track record of 11 consecutive years of dividend increases and a current yield of 1.2%. The dividend growth rate is above 8% and the “software sector” gives some additional diversification to this portfolio.