TotalEnergies Raises Quarterly Dividend 4.8% to $1.021

TotalEnergies SE raised its quarterly dividend to $1.021 per share, up 4.8% from $0.974. The shares traded ex-dividend on September 30, 2026, and the annual dividend is $4.24 per share.

Why the dividend changed

TotalEnergies describes the distribution as part of a policy that prioritizes dividend growth in line with cash-flow growth. The board declares the underlying dividend in euros, while distributions on shares listed in New York are paid in dollars. Exchange-rate translation can therefore affect the dollar amount received by U.S. shareholders, making the 4.8% increase in the reported dollar payment partly distinct from the board’s underlying euro-denominated decision. TotalEnergies’ dividend information documents the use of exchange rates for dollar payments.

The operating backdrop supported the decision. TotalEnergies reported second-quarter cash flow of $9.8 billion and adjusted net income of $6 billion, helped by high commodity prices and its integrated oil, gas and power portfolio. Gearing declined to 13%, and management said deleveraging and dividend growth were priorities. The company’s second-quarter results also make clear that future distributions remain subject to board discretion and factors including financial results, balance-sheet strength, liquidity and commodity prices.

The board subsequently formalized a multiyear policy of annual dividend growth while maintaining its focus on debt reduction. TotalEnergies expects energy production to grow 4% annually through 2030 and projects about $10 billion of free-cash-flow growth between 2025 and 2030 at a constant price deck. Its strategy relies on oil and gas project start-ups and rapid expansion in electricity generation. The September strategy update links those operating goals directly to cash generation and shareholder returns.

Dividend track record

The latest $1.021 payment compares with $0.974 in March 2026. Recent dollar payments have fluctuated rather than rising in a straight line, consistent with a euro-denominated dividend translated for U.S. shareholders.

Calendar-year totals show a clearer recent progression. Four payments totaled $3.15 in 2023, then rose 7.2% to $3.37 in 2024 and 13.2% to $3.82 in 2025. The five-year record is 5.3% annual growth, and the current growth streak stands at 3 consecutive years.

The last annual cut occurred in 2022. Calendar-year cash totals also fell 19.3% in 2023, but that comparison included four payments in 2023 against five in 2022. Payment timing, special distributions and currency translation can therefore make the dollar calendar-year series more volatile than the underlying regular dividend policy.

Is the dividend covered?

The dividend consumes 49% of earnings. That leaves more than half of reported earnings retained by the company, providing a meaningful buffer for investment, debt reduction and changes in commodity-market conditions.

SmarterDividends rates the dividend C, with a safety score of 62. That falls within the borderline (50-65) range. The grade indicates that present earnings coverage is adequate but not unusually strong for a cyclical energy producer. Oil and gas prices, project spending and balance-sheet leverage remain material inputs to the dividend’s resilience.

Yield and valuation

The forward yield is 4.83%, above the Energy sector median forward yield of 4.27%. At the annual dividend of $4.24, an investor holding 100 shares would receive $424.00 in annual income before taxes and any currency-related variation in individual quarterly payments.

The shares trade at $85.50. SmarterDividends estimates fair value at $84.04 and classifies the valuation as fair, equivalent to 2% downside to fair value. The stock’s 46.1% gain over the past year has brought the market price close to that estimate.

What to watch

The next ex-dividend date is December 31, 2026, with payment scheduled for January 5, 2027. The declared quarterly rate and the euro-dollar exchange rate both matter to the eventual dollar income received by U.S. shareholders.

TotalEnergies is scheduled to report third-quarter results on October 29, 2026, according to its financial calendar. The relevant items will be cash generation, gearing, capital spending and progress toward the company’s production targets. Investors can also track whether project start-ups and growth in Integrated Power deliver the cash-flow gains underpinning the board’s capital-return policy. Commodity prices remain a central variable because management explicitly includes them among the factors considered when setting future distributions.