A gain of 10% on Total in five months with a capped bonus

The rise in oil prices should help the oil company to straighten out its accounts and continue to provide its shareholders with a dividend guaranteeing them a yield of just over 7%. The file can be played by means of a capped bonus.

Included in the French equity portfolio of La Lettre de la Bourse, the Total share started the year well. Supported both by investors’ renewed appetite for risky assets, but also by the firmness of oil prices, which returned to their end-February 2020 levels of around $ 55. To everyone’s surprise, Saudi Arabia chose at the beginning of the year to further reduce its production by 1 million barrels per day over the months of February and March while waiting for the resumption of global growth with the acceleration of campaigns. vaccination program takes over and reinforces the demand for crude oil. This is a real boon for Total, which by continuing its savings strategy last year to further lower its operational breakeven point to less than $ 25 per barrel will fully benefit from this improvement in prices this year. Compared to the average price of 41.1 dollars observed over the first nine months of last year, the surge in oil prices has already reached 34%. Enough to further consolidate the company’s balance sheet and give its shareholders the assurance of maintaining an attractive distribution policy showing a return slightly above 7% in an environment of zero interest rates.

Reimbursed at 41 euros under condition

A capped bonus allows you to bet on Total without taking too much risk. The one selected is issued by Société Générale (code: FRSGE001A809) with a deadline of June 25, 2021 and two terminals located at 30 euros for the lowest and 41 euros for the highest. Let us remember how the certificate works: it will be reimbursed at maturity at its bonus level of 41 euros on condition that the Total share does not fall below the lower limit of 30 euros by then. Given its purchase price, it is likely to deliver a gain of 9.7% in just over 5 months. For a controlled risk since in the worst case where the security actually falls below the lower limit of the certificate, it will still be reimbursed on the 25 June 2021 maturity at the share price. But be careful, the investor will neither receive the dividends that the company will pay to its shareholders in the meantime and will not be able to remain exposed to a further rebound in value above the bonus level of 41 euros which constitutes a price of maximum reimbursement.

Our advice: buy a Total capped bonus issued by Société Générale (code: FRSGE001A809); deadline: June 25, 2021; terminals: 30/41 euros; parity: 1 certificate for 1 share; price: 37.38 euros; portion: 1.


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