Dividends4Life: Buy Royal Dutch Shell For 6.8% Dividend Yield While Waiting For An Oil Price Recovery

In my view, Royal Dutch Shell's (NYSE:RDS.A) (NYSE:RDS.B) stock should be included in every diversified large-cap dividend stock portfolio, and now is the right time to buy the stock. While waiting for a significant rebound in the price of oil, investors can enjoy the generous dividend currently yielding 6.8% a year. Shell clearly said that its quarterly dividend is $0.94 per ADS. According to its last stock price of $55.30, the annual yield is at 6.8%. Moreover, the company guaranteed this payment for 2015, and at least the same amount in 2016 (each ADS represents two ordinary shares, two A Shares in the case of RDS.A).

In my view, the company's shares will significantly appreciate when oil prices recover. Since I do not expect oil prices to fall dramatically from their current value, the down risk of the shares is limited. While waiting for a significant rebound in the price of oil, investors can enjoy the generous dividend yielding about 6.8% a year. The company has a long record of raising its dividend. Even during the global economic crisis of the years 2008-2009, Shell continued to increase its dividend. In contrast to other major integrated oil & gas companies, the company generated positive free cash flow during the first half of 2015. In my view, the stock should be included in every diversified large-cap dividend stock portfolio, and now is the right time to buy.

Source: Seeking Alpha

Related Articles:
- 3 Styles Of Successful Dividend Investing
- Why Dividend Growth Stocks Are Evil
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days