The investment case for oil companies has been under attack recently. Climate change activists know that the dividends paid by the largest of these companies are among the most lucrative and stable over time, of any payers in the marketplace today. Further, they know these attacks will receive wide coverage precisely because of the criticality of the dividend stability to these companies stock price. It’s a two-fer for these folks. The only thing is…it isn’t true. Dividends are the principle reason to own the shares of the major oil companies. The dividend payouts these days are yielding 4-7 percent, thanks to the depressed equity valuations of the oil majors. As you will note, this is well above most other options, like U.S. 10-year treasury notes as an example. Any threat to the dividend will absolutely bring a “dog diving under the bed in a thunderstorm” response from the typical […]