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
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
The one knock against this midstream company is its higher risk profile compared with its peers. It has been working to address that issue b...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
-
Utility stocks were supposed to be yesterday’s favorite investment. The theory regarding utility stocks was simple: Robust economic growth c...
-
Just like stocks can be expensive, REITs can also be a bit pricey. But rather than use a price-to-earnings ratio, the best way to look at RE...
0 comments
Post a Comment
Post a Comment