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
Buy Royal Dutch Shell For 6.8% Dividend Yield While Waiting For An Oil Price Recovery
Posted by D4L | Tuesday, November 10, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.