Shell Share Discussion Threads

[ayl30] 06/8/2015 12:42

Re 'A' vs 'B' divis. Barclays reply to me was as follows

"You're correct that you've only ever bought the B shares, however your holding of A shares is correct. This is due to the way Royal Dutch Shell pay their dividends, and I've explained this below.
I can see your ISA is setup so your dividends are automatically reinvested, and as part of this, we'll accept scrip dividends when these are offered by a company. Royal Dutch Shell currently offer a scrip facility, so we'll accept these scrip shares on your behalf.
Royal Dutch Shell's scrip dividend policy means they'll always pay their scrip shares as A shares, regardless of the line of stock held. This is the case regardless of how your shares are held, and isn't specific to Barclays. I can see, though, their scrip policy was suspended for around six months, so a couple of your dividends were paid in cash, and reinvested in B shares.
You can view more information on Royal Dutch Shell's scrip programme by clicking here.
hXXp://s01.static-shell.com/content/dam/shell-new/local/corporate/corporate/downloads/pdf/investor/scrip-terms-and-conditions-2015.PDF

[imperial3] 06/8/2015 11:46

Also,am I right in thinking that the dividend will be maintained into 2016?

[nicksig] 06/8/2015 11:20

Am I right in thinking that RDSB goes XD next Thursday?

[shaggies_view] 06/8/2015 10:39

Raised my stop to 1825. Just above the gap bamboo2's chart shows.
If RDSB can fill the gap and post a slightly higher bottom, then it will be bullish short term.

Price of Brent Oil (POBO) to test that long term level at $48.

Shaggy

[fangorn2] 06/8/2015 08:18

@Smith,

Re Shell divis automatically reinvested.

Had the same problem myself so now have small RDSA holding sitting there in account.

If you take up Shell's own scrip offer then you will get RDSA.

If you selected divi reinvestment with your broker then you should get RDSB.

I thought I'd selected the second but apparently I'd mistakenly gone for former.
Broker sorted it out going forward.

[smith99] 06/8/2015 07:32

I believe the broker messed up. Any d.r.i.p. plan should be like for like so the "a" shares should not have been purchased as they are a different ticker.

[ayl30] 06/8/2015 07:13

Jar - re Barclays, queried this point myself. Issue is that She'll themselves offer script div and this is paid in 'A' shares. Check their div RNS they talk about it there. Bit messy really for UK investors as we end up with two separate holdings

[funtimejonny] 06/8/2015 07:00

Interesting point.

[4spiel] 06/8/2015 00:31

You must remember that the A shares are euro denominated irrespective of the dividend withholding tax. There are times when buying the stock in euro can make you some money ie when the euro is undervalued compared with sterling. there have been these times? Sometimes a broker will recommend the A shares and you think why ? Because they reckon the £ is too high. there was such a recommendation recently but from only one broker. the A shares canbe a good source of euro if you need them if you have property in the zone as the return is still quite good less withholding tax for the income to pay bills as you get a good exchange on the sterling to buy the shares at the moment.

[essentialinvestor] 05/8/2015 23:59

Much appreciated.

[bamboo2] 05/8/2015 22:36

Hi EI, a chart review shows things mainly going to plan with a consolidation phase, making a bottom. There is a potentially troublesome gap marked in orange, that may be filled in due course. The descending triangle apex is due on August 25th, and this can sometimes mark a potential turn point for the share price gla

[essentialinvestor] 05/8/2015 22:06

Not sure I would describe Shell as a party atm.

[zorija] 05/8/2015 21:51

Link in header...



ZZZ

[jaf1969] 05/8/2015 21:15

I hold B shares and auto reinvest my dividends but barclays bought A shares instead of B shares. I'm not sure if this is the standard approach brokers adopt when reinvesting?

[davr0s] 05/8/2015 21:04

Ok thanks - looks like B it is then!

[funtimejonny] 05/8/2015 20:15

Avoid A shares unless you fancy filling in a tax return in the Dutch language.

[irnbru2] 05/8/2015 19:58

A, I believe are linked to Holland. What happens, is, they take some tax on the divi, and you can not get it back..

The "B" dose not get the tax. It can be traded on several stock exchanges, if you have the certificate.

[davr0s] 05/8/2015 19:50

Looking to join the party here. Tell me what are the key differences between A and B shares?

[supermarky] 05/8/2015 17:49

Powering on up. Xd shortly. Lovely jubbly

[damanko] 05/8/2015 17:45

contango1 & Smith99, what constructive and positive posts, makes me feel pleased I invested in RDSB a month or so ago, if your posts are indicative of what to expect (having made a decision to invest in any company, I never look at older posts, often they're too bitter or too smug...).

In 2 years time I'll be a ripe old age, though still several years short of being eligible for a state pension. The dividend in the meantime might just keep me happy.

[trulyscrumptious] 05/8/2015 17:13

I thought they were going to help Iran put billions of barrels onto the market, that should make up for the low oil price.

[essentialinvestor] 05/8/2015 15:40

Low is in IMV, sub 1750 again?, doubt it.

[smith99] 05/8/2015 15:22

I have no doubt that shell will maintain its 70 year dividend history by selling assets and stopping new developments. I also strongly believe that much of the oil price reduction is already reflective in the current share price Ok if oil tanks some more then I would expect a further reduction but I just see all of this as good buying opportunities. Shell is big enough to strategically place itself in a good long term position and all of my recent purchases in shell have been towards a long term view of 5 years or more. You might even see shell snapping up the smaller companies if it sees an absolute bargain along the way. Cash is king and big is beautiful so that puts shell in a good position,

[contango1] 05/8/2015 12:11

As sure as night follows day a falling oil price will reduce supply and tend to increase at least some demand from eg motorists. A lot has been said of fracked oil production being maintained and even slightly increased in the face of falling crude. Fracking efficiency has improved around 15% in the past year, but many of the companies involved are in severe financial trouble. A lot of drilling was/is financed by borrowing, guaranteed by the companies forward selling the oil up to a year ahead. These contracts are closing and by the end of the year the 65% fall in the rig count will be showing through to production. For the guessing game, seems unlikely to be much change in crude before 2016. For RDS a cut in the dividend before 2017/18 would surely raise a credibility/resigning issue for some directors.

[fjgooner] 05/8/2015 00:14

Re: If oil goes to $40, they must cut the divi.

No, that's not correct at all. Dividends are confirmed as level for the next 2 quarters and level or better for the subsequent 4 quarters.

If I recall correctly from Bloomberg TV a couple of weeks ago, one of the most respected oil industry analysts who called the downturn ahead of the drop from $100+ is now predicting that the market will level later this year in the $70+ range. He also remarked on the sub-par nature of much of the inventory that is likely to be brought on stream in November if/when the Persian sanctions are cleared. In summary, he dismissed the Persian vector on supply as largely neutral to market reality. Of course that doesn't dissuade volume commodity speculators from trying to flip the market in the ultra-short term.

Anyway, got to go out for dinner now ... a good evening to all.

Best regards,

FJ :)