Shell at 15% yield

My computer tells me that RDS.A is yielding 15% or so in euros. Alright, 14.17%. So:

The middle of a market correction produces bargains, of course it does. The middle of an oil price war might not indicate that oil majors are such.

But the yield on Shell PLC hit 9% overnight which is, in this low yield world, a very tempting purchase.

The question is, will it maintain the dividend? There’s a good argument that it will, yes.

That recommendation was perhaps a little premature. Ahem.

And so, the collective wisdom here is? Shell will cut the dividend or Shell is the bargain of the century?

5 thoughts on “Shell at 15% yield”

  1. Drop them a line and say you’ll buy shares if they move the company commercial HQ back to Britain.

  2. It’s one thing to plan conservatively for a low oil price, it’s another to see a fire sale in real time lit by two unreliable “partners”.
    Shell will slash capex faster and deeper than the dividend. So the hedge strategy is to buy the majors and sell the service companies.

  3. It’s not a black-or-white question, but a scale. The dividend can drop by anything from 0% (no cut) to 100% (no dividend). At 15% yield, even a 50% dividend cut would be tempting.

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