Share Name Share Symbol Market Type Share ISIN Share Description
Royal Dutch Shell B LSE:RDSB London Ordinary Share GB00B03MM408 'B' ORD EUR0.07
  Price Change % Change Share Price Shares Traded Last Trade
  +0.00p +0.00% 2,549.00p 0 07:15:00
Bid Price Offer Price High Price Low Price Open Price
2,510.00p 2,550.00p - - -
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 225,948.89 13,423.12 116.98 21.3 95,472.5

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Shell B Daily Update: Royal Dutch Shell B is listed in the Oil & Gas Producers sector of the London Stock Exchange with ticker RDSB. The last closing price for Shell B was 2,549p.
Royal Dutch Shell B has a 4 week average price of 2,502p and a 12 week average price of 2,444.50p.
The 1 year high share price is 2,844.50p while the 1 year low share price is currently 2,194p.
There are currently 3,745,486,731 shares in issue and the average daily traded volume is 7,670,115 shares. The market capitalisation of Royal Dutch Shell B is £95,472,456,773.19.
la forge: What could the future hold for Aviva plc, Glencore PLC, Vodafone Group plc and Royal Dutch Shell Plc? Do these shares offer bright investment outlooks? Aviva plc (LON:AV) (AV.L), Glencore PLC (LON:GLEN) (GLEN.L), Vodafone Group plc (LON:VOD) (VOD.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) October 16, 2018 Robert Stephens FTSE 100 Royal Dutch Shell Plc Royal Dutch Shell Plc The investment prospects of Aviva plc (LON:AV) (AV.L), Glencore PLC (LON:GLEN) (GLEN.L), Vodafone Group plc (LON:VOD) (VOD.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) appear to be relatively bright in my view. Aviva is currently searching for a new CEO, which could create a degree of instability in the short run. However, with what seems to be a sound business model following its restructuring of recent years, I feel it could generate improving financial performance. With acquisitions set to be ahead alongside further investment in fast-growing markets, I believe that the Aviva share price could offer good value for money on a dividend yield of around 6%. Glencore’s recent share price falls could continue in the short run. Investor sentiment appears to be weak, and this trend could continue as fears surrounding regulatory risks continue. However, with a single-digit P/E ratio and what seems to be an improving business model, I’m upbeat about the outlook for the Glencore share price. With the world economy continuing to grow relatively quickly, I think it could benefit from a buoyant commodity marketplace. Vodafone’s share price fall has been disappointing in recent months. The company’s stock price has come under pressure as investors have become concerned about the level of investment required by the business. While this could hold back its performance in the near term, over the long run I believe that the FTSE 100 stock could offer upside potential. Vodafone has a 7%+ dividend yield and with acquisitions having been made recently, its EPS growth rate could improve over the next few years. Shell’s dividend yield continues to be relatively attractive in my view – even after its share price has performed relatively well in recent months. With a 5.5%+ dividend yield, the stock continues to have a yield that is around 150 basis points higher than the FTSE 100. Since I’m optimistic about the prospects for the oil price, I feel that Shell could offer upside potential, although volatility may be relatively high. About Robert Stephens 4577 Articles Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email or use one of the other contact methods available on the 'Contact Us' page
adrian j boris: Https:// Assessing Shell's Potential Returns From Higher Oil Prices Oct. 2, 2018 9:54 AM ET| 8 comments | About: Royal Dutch Shell plc (RDS.A), RDS.B Daniel Thurecht Daniel Thurecht Long-term horizon, contrarian, oil & gas, industrials (302 followers) Summary During the previous year oil prices have continued to climb on the back of improved market fundamentals. Based on my analysis I believe Shell's shares offer a significant amount of potential returns if oil prices continue to hold in the low $80 a barrel range going forward. Even if oil prices fall back to the low $60 a barrel range I believe Shell's shares still offer a decent amount of potential returns. Introduction During the previous year the oil market conditions have improved significantly with the bullish fundamentals of tight supply, modest demand growth and limited spare capacity all pushing prices to multiyear highs. Naturally this has changed the main discussion surrounding oil producers, such as Shell (RDS.A) (RDS.B). Previously the main topic was whether they would maintain their dividend, but investors such as myself are now more interested with their potential return if oil prices remain supportive. Whilst I cannot tell with certainty that this will be the case, considering the bullish fundamentals mentioned before, it certainly seems plausible. Therefore, in this article I will be providing my analysis of Shell’s future valuation and dividend potential if Brent oil prices average in the low $80 a barrel range going forward. Valuation To begin I will provide my estimations for a future fair price for Shell’s class B ADR shares, which is based off their 2019-2021 guidance provided on page 22 of their 2018 Q2 results presentation. This guidance can be seen below, which shows they are targeting $25b to $30b in organic free cash flow per annum between $25b and $30b with Brent oil prices in the low $60 a barrel range. Going forward when I refer to “free cash flow,” I will be referring to their organic free cash flow as I prefer to exclude the effects of divestitures and acquisitions. Free Cash Flow Image Source: Shell 2018 Q2 Results Presentation Page 22 (previously linked). To provide a conservative valuation I will be using the lower end of their guidance, $25b, and since this guidance is across a three year time frame, I will split the difference and assume this is achieved in 2020. Before adjusting this guidance for a higher oil price environment, I will first provide a baseline valuation that assumes Brent oil prices only average this lower $60 a barrel range. My estimated future values for Shell will be based off free cash flow yields between 6% and 5%, which seem realistic given their historical free cash flow yields (see below). Chart RDS.B Free Cash Flow Yield (NYSE:TTM) data by YCharts Combining these yields with free cash flow of $25b produces valuations of $417b to $500b respectively. It is obvious that these are both significantly higher than their current market valuation capitalization of $296b. However, before calculating the potential per share capital appreciation I will account for the effects of their recently announced $25b share buyback program. At the current market capitalization this would allow management to repurchase approximately 8.5% of all outstanding shares. However, since this will be effected by their future share price and to ensure I provide a conservative valuation, I will assume that only 5% of their outstanding shares are repurchased. When Shell reported their 2018 Q2 report they had 8,342,622,781 shares on issue, which would fall to 7,925,491,642 in 2020 after the buyback program has been completed. Therefore, after adjusting for the effects of their ADR share consolidation (see notes below) this would imply a share price of $105 to $126, based on the $417b to $500b market valuations calculated previously. Currently Shell’s class B ADR shares are trading for $70.93 and thus this indicates a potential upside of 48% to 78% during the next two years even if Brent oil prices only average in the low $60 a barrel range. Whilst this alone is a significant potential return, the main purpose of this article is to calculate the potential return if Brent oil prices average a higher level. Even though some market analysts are talking of a return to $100 per barrel Brent oil, I feel this may be too far of a stretch and thus I will use $80 a barrel. Shell management has stated that for every $10 per barrel of Brent oil increases their operating cash flow should increase by approximately $6b, see below. Free cash flow 2 Image Source: Shell 2018 Q2 Results Presentation Page 22 (previously linked). Since capital expenditure should remain unchanged, this additional cash flow should directly flow-through to their free cash flow and increase it to $37b ($25b + 2x$6). However, since higher oil price environments can lead to cost inflation and I wish to provide a conservative valuation, I will remove $2b of this additional cash flow, resulting in free cash flow of $35b. The same valuation method as before produces a market valuation of $583b to $700b, or $147 to $177 for their class B ADR shares, implying an upside of 107% to 150% during the next two years. Notes: Their total (class A & B) outstanding share count was sourced from their 2018 Q2 results announcement. Since I’m valuing their class B ADR shares, all calculations halved this share count as each ADR represents two normal shares. Dividend Presently Shell pays an annual dividend of $3.76 per ADR, which they have maintained at this level for just over the last four years. Obviously with the oil price crash now firmly in the rear-view mirror, investors are expecting a return to growth in the coming years. I will use the free cash flow that was previously calculated to estimate Shell’s potential annual dividend payments for 2020. During 2017 Shell paid out almost all of their after interest expense free cash flow as dividends to shareholders, however I doubt this will continue going forward. Therefore, I believe a more realistic assumption is for approximately 2/3 or 67% to be paid out as dividends, with the remainder being used to further reduce debt and conduct share buybacks. In the scenario where Brent oil prices only averages $60 a barrel and they produce $25b in free cash flow, this would leave $16.75b for dividends payments, implying an annual dividend payment of $4.23 for a yield on current cost of 5.96%. Applying the same principals to the scenario where Brent oil prices average $80 a barrel produces an annual dividend of $5.92 for a yield on current cost of 8.34%. Notes: Once again, when calculating their dividends per share I halved their total (class A & B) outstanding share count to adjust for the ADRs consolidation. The yield on current cost was calculated with the current market price at time of writing for their class B shares of $70.93. Financial Position & Risks Since completing their takeover of BG Group approximately two and half years ago, Shell has done a remarkable job reducing their debt levels with their gearing ratio now standing at a manageable 23.6%, as per their 2018 Q2 results. I see no reason to be concerned with their financial position when combining this with their current ratio of 1.27, interest coverage ratio of 10.64, A+ credit rating and strong free cash generation. Due to timing constraints I cannot discuss every risk factor and I suggest anyone interested should read the relevant sections of their 2017 annual report. Obviously the main risk is another oil price crash, possibly stemming from the current U.S.-China trade war. Considering the very bullish fundamentals of the oil market and Saudi Arabia’s intention to keep prices stable, I feel a complete crash during the foreseeable future is a very low probability event. Even if another financial crisis were to occur I believe the oil market would rebound fairly quickly, especially if Saudi Arabia and Russia reduce their production. That said, even if another oil price crash were to occur I believe Shell’s financial position and operations are strong enough to continue paying their current dividend for at least two consecutive years of sub-$50 per barrel Brent oil prices. Notes: All figured in the section were calculated by myself with the data sourced from their 2018 Q2 results announcement, previously linked. Conclusion To conclude, my analysis has shown that in theory Shell’s investors have a significant amount to gain if oil prices continue trading strongly well into the future, with potential capital appreciation of between 107% and 150% and an 8.34% dividend. However, even if this is not necessarily the case and Brent oil only averages around $60 a barrel, Shell’s investors still have ample capital appreciation and dividend growth to enjoy. Therefore, I will continue holding my large investment in Shell I made during the oil price crash of 2015-2016. Disclosure: I am/we are long RDS.B. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
waldron: Royal Dutch Shell: buy, sell or hold? Edward Sheldon | Wednesday, 13th June, 2018 | More on: RDSB Image source: Getty Images. Over the last three months, Royal Dutch Shell’s (LSE: RDSB) share price has soared nearly 20%. In the last two years, the stock is up over 50%. After such a strong performance, are Shell shares worth buying now? Or, if you’re already a shareholder, is it time to sell and lock in your profits? Let’s take a look at the investment case. Oil price surge Before we analyse Shell’s numbers, it really is worth looking at why Shell shares have powered ahead recently. After all, the FTSE 100 is only up around 8% over the last three months. Why have Shell shares smashed the index? The answer is that Shell’s share price has soared on the back of a strong rise in the price of oil. Over the last three months, high levels of geopolitical uncertainty have pushed the price of Brent crude oil up from around $65/bbl to $75/bbl. One key driver of the recent oil price surge has been Donald Trump’s withdrawal from the Iran nuclear deal. This has raised concerns that the global supply of oil will be squeezed as Iran is the third-largest producer in the Organisation of the Petroleum Exporting Countries (Opec), the source of around 3% of global demand. Syria conflict, Opec production cuts and the recent cold snap across the UK, Europe and the US have also contributed to oil’s recent gains. It’s not rocket science to realise that a higher oil price is good news for a global oil giant like Shell. A higher oil price boosts revenues, cash flows and profits and could even mean higher dividends for shareholders at some point in the future. So that’s why Shell shares have outperformed the footsie recently. As for where the oil price is headed next, that’s hard to predict. Some analysts are talking up $100/bbl oil, while others are expecting prices to ease in the second half of 2018. Revenues and earnings boost As a result of higher oil prices, City analysts are scrambling to upgrade their FY2018 forecasts for Shell. Analysts now expect revenue for the year to come in at $365bn, up 20% on last year. Similarly, earnings per share are expected to rise 45% to hit $2.79. It’s worth noting that this earnings estimate has been upgraded by $0.24 in the last month alone. Valuation and dividend Despite the earnings upgrades, Shell shares don’t look particularly expensive at present. The earnings estimate of $2.79 places the stock on a forward-looking P/E ratio of 12.7, which is far below the median FTSE 100 forward P/E of 14.6. Shell’s dividend yield also looks extremely appealing in the current low-interest-rate environment. The oil major paid out dividends of $1.88 per share last year, which at the current share price, equates to a high yield of 5.3%. While dividend coverage has been low in recent years, the dividend now looks a lot safer with earnings on the rise. Buy, sell or hold? Weighing up Shell’s recent share price gains, and the stock’s valuation and yield, I rate the oil major as a ‘hold’ for now. I’d be a little hesitant about buying the stock after such a strong share price rise, yet at the same time, I don’t believe it’s time to sell Shell either.
fjgooner: Https:// Impact of Share Repurchases By Elvis Picardo, CFA | Updated March 7, 2018 — 5:26 PM EST A share repurchase or buyback simply refers to a publicly traded company purchasing its own shares from the marketplace. Along with dividends, share repurchases are an avenue for a company to return cash to its shareholders. Many of the best companies strive to reward their shareholders through consistent dividend increases and regular share buybacks. A share repurchase is also known as “float shrink” since it contracts a company’s freely trading shares or share float. Repurchase Impact on EPS Since a share repurchase reduces a company’s outstanding shares, its biggest impact is evident in per-share measures of profitability and cash flow such as earnings per share (EPS) and cash flow per share (CFPS). Assuming that the price-earnings (P/E) multiple at which the stock trades is unchanged, the buyback should eventually result in a higher share price. As an example, consider the case of a hypothetical company – call it Birdbaths & Beyond (BB) – which had 100 million shares outstanding at the beginning of a given year. The stock was trading at $10, giving BB a market capitalization of $1 billion. BB had net income of $50 million or EPS of 50 cents ($50 million ÷ 100 million shares outstanding) in the preceding 12 months, which means that the stock was trading at a P/E of 20 (i.e. $10 ÷ 50 cents). Assume BB also had excess cash of $100 million at the start of the year, which it deployed in a share repurchase program over the next 12 months. So at the end of the year, BB would have 90 million shares outstanding. For the sake of simplicity, we have assumed here that all the shares were repurchased at an average cost of $10 each, which means that a total of 10 million shares were repurchased and canceled by the company. Suppose BB earned $50 million in this year as well; its EPS would now be about 56 cents ($50 million ÷ 90 million shares). If the stock continues to trade at a P/E multiple of 20, the share price would now be $11.20. The 12% stock appreciation has been entirely driven by the EPS increase, thanks to the reduction in BB’s outstanding shares. Driving Shareholder Value A couple of simplifications have been used here. First, EPS calculations use a weighted average of the shares outstanding over a period of time, rather than just the number of shares outstanding at a particular point. Second, the average price at which the shares are repurchased may vary significantly from the shares' actual market price. In the example above, buying back 10% of BB’s outstanding shares would quite possibly have driven up its stock price, which means that the company would end up buying back less than the 10 million shares we have assumed for its $100 million outlay. These simplifications understate the magnified effect that consistent repurchases have on shareholder value. Companies that consistently buy back their shares can grow EPS at a substantially faster rate than would be possible through operational improvements alone. This rapid EPS growth is often recognized by investors, who may be willing to pay a premium for such stocks, resulting in their P/E multiple expanding over time. In addition, companies that generate the free cash flow required to steadily buy back their shares often have the dominant market presence and pricing power required to boost the bottom line as well. Going back to the BB example, assume the company's P/E multiple rose to 21 (from 20), while net income grew to $53 million (from $50 million). After the buyback, BB’s stock would be trading at about $12.40 (i.e. 21 x EPS of 59 cents, based on 90 million shares outstanding) at year-end, an increase of 24% from its price at the beginning of the year. Impact on Financial Statements A share repurchase has an obvious effect on a company’s income statement, since it reduces its outstanding shares. But it also impacts other financial statements. On the balance sheet, a share repurchase will reduce the company’s cash holdings, and consequently its total assets base, by the amount of the cash expended in the buyback. The buyback will simultaneously also shrink shareholders' equity on the liabilities side by the same amount. As a result, performance metrics such as return on assets (ROA) and return on equity (ROE) typically improve subsequent to a share buyback. Companies generally specify the amount spent on share repurchases in their quarterly earnings reports. The amount spent on share buybacks can also be obtained from the Statement of Cash Flows in the “Financing Activities” section, as well as from the Statement of Changes in Equity or Statement of Retained Earnings. Impact on Portfolios Share repurchases can have a significant positive impact on an investor’s portfolio. For proof, one only has to look at the S&P 500 Buyback Index, which measures performance of the 100 companies in the index with the highest buyback ratio (calculated as the amount spent on buybacks in the past 12 months as a percentage of the company’s market capitalization). In the 10 years ending Nov. 8, 2013, the S&P Buyback Index had surged 158.2%, compared with a gain of 68.1% for the S&P 500, outperforming it by 90 percentage points. What accounts for this degree of outperformance? Like a dividend increase, a share repurchase indicates a company’s confidence in its future prospects. Unlike a dividend hike, a buyback signals that the company believes its stock is undervalued and represents the best use of its cash at that time. In most cases, the company’s optimism about its future pays off handsomely over time. Share Repurchases vs. Dividends While dividend payments and share repurchases are both ways for a company to return cash to its shareholders, dividends represent current payoff to an investor, while share buybacks represent a future payoff. This is one reason why investor reaction to a stock that has announced a dividend increase will generally be more positive than to one announcing an increase in a buyback program. Another difference has to do with taxation, especially in jurisdictions where dividends are taxed less favorably than long-term capital gains. Assume you acquired 100,000 shares of BB – the company mentioned in the example earlier – at $10 each, and you live in a jurisdiction where dividends are taxed at 20% and capital gains are taxed at 15%. Suppose BB was debating between using its $100 million in excess cash for buying back its shares or paying it out to shareholders as a special dividend of $1 per share. While the buyback would have no immediate tax impact on you, if your BB shares were held in a taxable account, your tax bill in the event of a special dividend payout would be quite hefty at $20,000. If the company proceeded with the buyback and you subsequently sold the shares at year-end at $11.20, the tax payable on your capital gains would still be lower at $18,000 (15% x 100,000 shares x $1.20). Note that $1.20 represents your capital gain of $11.20 minus $10 at year-end. Overall, while share repurchases may be better for building one’s net worth over time, they do carry more uncertainty than dividend payments, since the buybacks' value depends on the stock's future price. If a company’s float has contracted by 20% over time but the stock subsequently plummets 50%, an investor would, in retrospect. prefer to have received that 20% in the form of actual dividend payments. Capitalizing on Share Repurchases For companies that raise dividends year after year, one needs to look no further than the S&P 500 Dividend Aristocrats, which includes companies in the index that have boosted dividends annually for at least 25 consecutive years. For share repurchases, the S&P 500 Buyback Index is a good starting point to identify companies that have been aggressively buying back their shares. While most blue chips buy back shares on a regular basis – usually to offset dilution caused by the exercise of employee stock options – investors should watch for companies that announce special or expanded buybacks. For example, in October 2013, IBM (IBM) announced a $15 billion addition to its repurchase plan; with sales declining for six successive quarters, the buyback was expected to enable IBM to reach its adjusted EPS target of $20 by 2015. “Float shrink” ETFs have also attracted a great deal of attention after a sizzling performance in 2013. The PowerShares Buyback Achievers Portfolio (PKW) is the biggest ETF in this category. The ETF invests in U.S. companies that have repurchased at least 5% of their outstanding shares over the previous 12 months, and as of March 2018, it was up 13.6% compared to a year ago. Another popular but much smaller ETF is the TrimTabs Float Shrink ETF (TTFS), which was up 8.39% as of the same date. The Bottom Line Share repurchases are a great way to build investor wealth over time, although they have a higher degree of uncertainty than dividends.
ariane: 4 Reasons Why Investors Like Buybacks By Trevir Nath | Updated October 3, 2017 — 10:00 AM EDT Share Ultimately, highly successful companies reach a position where they are generating more cash than they can reasonably reinvest in the business. The financial crisis has caused investors to pressure companies to distribute the accumulated wealth back to shareholders. Typically, companies can return wealth to shareholders through stock price appreciations, dividends, or stock buybacks. In the past, dividends were the most common form of wealth distribution. However, as Corporate America becomes more progressive and flexible, a fundamental shift has occurred in the way companies deploy capital. Instead of traditional dividend payments, buybacks have been viewed as a flexible practice of returning excess cash flow. Buybacks can be seen as an efficient way to put money back into its shareholders pockets, as recently demonstrated by Apple’s (APPL ) capital return programs. The Basics of Buybacks In recent history, leading companies have adopted a regular buyback strategy to return all excess cash to shareholders. By definition, stock repurchasing allows companies to reinvest in themselves by reducing the number of outstanding shares on the market. Typically, buybacks are carried out on the open market, similarly to how investors purchase stocks. While there has been a clear shift in wealth distribution of dividends to stock repurchasing, this doesn’t mean a company cannot pursue both. Apple investors have grown to prefer buybacks since they have the choice of whether or not to partake in the repurchase program. By not participating in a share buyback, investors can defer taxes and turn their shares into future gains. From a financial perspective, buybacks benefit investors by improving shareholder value, increasing share prices, and creating tax beneficial opportunities. Improved Shareholder Value There are many ways profitable companies can measure the success of its stocks. However the most common measurement is earnings per share (EPS). Earnings per share are typically viewed as the single most important variable in determining share prices. It is the portion of a company’s profit allocated to each outstanding share of common stock. When companies pursue share buyback, they will essentially reduce the assets on their balance sheets and increase their return on assets. Likewise, by reducing the number of outstanding shares and maintaining the same level of profitability, EPS will increase. For shareholders who do not sell their shares, they now have a higher percent of ownership of the company’s shares and a higher price per share. Those who do choose to sell have done so at a price they were willing to sell at. Boost in Share Prices When the economy is faltering, share prices can plummet as a result of weaker than expected earnings amongst other factors. In this event, a company will pursue a buyback program since it believes that company shares are undervalued. Companies will choose to repurchase shares and then resell them in the open market once the price increase to accurately reflect the value of the company. When earnings per share increases, the market will perceive this positively and share prices will increase after buybacks are announced. This often comes down to simple supply and demand. When there is a less available supply of shares, then an upward demand will boost share prices. Tax Benefits When excess cash is used to repurchase company stock, instead of increasing dividend payments, shareholders have the opportunity to defer capital gains if share prices increase. Traditionally, buybacks are taxed at a capital gains tax rate, whereas dividends are subject to ordinary income tax. If the stock has been held for more than one year, the gains would be subject to a lower capital gains rate. Excess Cash When companies pursue buyback programs, this demonstrates to investors that the company has additional cash on hand. If a company has excess cash, then at worst the investors do not need to worry about cash flow problems. More importantly, it signals to investors that the company feels cash is better used to reimburse shareholders than reinvest alternative assets. In essence, this supports the price of the stock and provides long-term security for investors. The Downside While investors tend to adore buybacks, there are several disadvantages investors should be aware of. Buybacks can be a signal of the marketing topping out; many companies will repurchase stocks to artificially boost share prices. Typically, executive compensations are tied to earnings metrics, and if earnings cannot be increased, buybacks can superficially boost earnings. Also, when buybacks are announced, any share price increase will typically benefit short-term investors rather than investors seeking long-term value. This creates a false signal to the market that earnings are improving due to organic growth and ultimately ends up hurting value. The Bottom Line Generally speaking, redistributing wealth has been viewed positively by investors. This can come in the form of dividends, retained earnings, and the popular buyback strategy. In terms of finance, buybacks can boost shareholder value and share prices while also creating a tax advantageous opportunity for investors. While buybacks are important to financial stability, a company’s fundamentals and historical track record are more important to long-term value creation. Read more: 4 Reasons Why Investors Like Buybacks | Investopedia Https:// Follow us: Investopedia on Facebook
fjgooner: 2hoggy, Same as you my friend. As I implied, I come from a working class family in a deprived coastal town in England and have worked very hard & invested carefully over the years to become comfortable now in my older years (now over 50). But, like anyone else, I am not in the business to lose money from here. Happily, Shell and this sector look safest in that respect in late cycle dynamics. Shell currently looks set to be a stellar stock pick for 2018Q2 and beyond. Even this week's 2018Q1 should be received well and point towards an improving free cash flow profile for the year ahead. With FCFP improvements enabling further key reductions in gearing, share buybacks look set to be initiated sometime soon, and hopefully before the share price rises too quickly. This in my one main annoyance with buybacks - they always seem to occur when a company's share price is doing well and are therefore comparatively expensive. A frustrating paradox, but I do understand why ... With $75 Brent as of tonight, I doubt we'll see a low RDSB share price again anytime soon, so Shell may as well get on with their buyback soon. :)
ariane: Is Royal Dutch Shell plc a good ISA stock after the recent share price fall? Edward Sheldon | Wednesday, 4th April, 2018 | More on: RDSB Image source: Getty Images. Royal Dutch Shell (LSE: RDSB) shares have not escaped the recent FTSE 100 sell-off. After a strong finish to 2017 and a positive start to January in which Shell’s share price rallied from around 2,400p to a 52-week high of over 2,600p, the stock has since fallen back to the 2,260p level today. That share price represents a 13% decline from January’s high. There’s no denying that Shell is a world-class company. The oil major has a total market capitalisation of almost £200bn and is the largest weighting in the FTSE 100 index. As a result, the stock is held by the majority of large mutual funds and pension funds. If you own Shell shares, you’re in good company. But does Shell’s current share price offer value? Is the oil major a solid pick for an ISA at the moment? Let’s take a look at the investment thesis. Valuation With analysts expecting Shell to generate earnings per share of $2.35 for FY2018, the stock’s current forward-looking P/E is a reasonable 13.6. That’s bang in line with the average FTSE 100 P/E according to Stockopedia. It’s worth noting, however, that rival BP has a slightly more expensive valuation and currently trades on a forward-looking P/E ratio of 14.7. This suggests that Shell is the better value of the two stocks. Overall, I think Shell’s valuation is quite reasonable after the recent share price fall. It’s worth pointing out that the oil price fell sharply during February’s sell-off, with Brent dropping from over $70/bbl to around $62/bbl. Oil has since recovered to $67/bbl, yet Shell’s share price remains depressed. This leads me to believe that it could potentially rebound higher when we get through this current period of high volatility. Dividend We can’t talk about Shell without mentioning the dividend, as the oil major offers one of the highest yields in the FTSE 100 at present. Last year, Shell paid its shareholders $1.88 per share in dividends. At the current share price and GBP/USD exchange rate, that equates to a high yield of 5.9%. Pocketing that kind of dividend on a regular basis, and compounding it over the long term, can really enhance your wealth. Shell’s current dividend yield is almost double the average for the FTSE 100 (3.1%) and is over three times the yield you can expect to receive from the average cash ISA these days. So that has to be viewed as a positive. Having said that, Shell has not increased its dividend for several years now, which is not ideal from an income investing perspective. There are plenty of companies within the FTSE 100 that are increasing their dividends, and therefore may offer better inflation protection. It’s worth noting though that Shell does have a fantastic dividend track record and has not cut its payout since WW2. Risks Of course, the shares aren’t without risks. Another dramatic collapse in the oil price could result in the stock falling significantly. It’s also worth keeping the long-term threat of renewable energy in mind. However, overall, I believe Shell shares offer an attractive investment opportunity right now. I own it in my own personal ISA and plan to keep holding the stock for the long term. Buy-And-Hold Investing Our top analysts have highlighted five shares in the FTSE 100 in our special free report "5 Shares To Retire On". To find out the names of the shares and the reasons behind their inclusion, simply click here to view it immediately with no obligations whatsoever! Edward Sheldon owns shares in Royal Dutch Shell B. The Motley Fool UK has recommended BP and Royal Dutch Shell B.
fjgooner: Yawn. Royston yet again. You're getting seriously boring Royston. Re: Royston Wild has no position in any shares mentioned. That may well be true, but he certainly seems to have a determination to post relentless negative articles on Shell for ages. Why would someone with no interest post so many negative articles on the Motely Fool? Have a look at: Http:// Below are a few typical Royston Wild headlines from 2016, but there are many more to choose from the link posted above throughout 2017 - commitment of the highest possible order. Is there a clue in the title Motely Fool?. I've included below the Closing Price of Shell to give you an idea of how helpful his advice has been if the casual investor had taken it. RDSB Shareprice today: £23.85 76% higher than when he posted his classic "I believe investors should resist attempting to pick up a bargain" when the RDSB share price was at £13.51. That is why I personally choose to never take his opinion on Shell as anything other than comical. And irritating for the absolute lack of acknowledging how he's got it wrong on every prior "article". But this one from March this year sums this poster up the best: Https:// Why I’d never buy Royal Dutch Shell plc Never? Lol. Don't get your clown shoes trapped in the rotating doors on your way out. Best regards, FJ ------------------------- Why Now May Be The Time To Sell Anglo American plc, Tesco PLC & Royal Dutch Shell Plc By Royston Wild - Thursday, 14 April, 2016 RDSB Shareprice was at £18.13 Why I Wouldn't Touch Royal Dutch Shell Plc & Tullow Oil plc With A Bargepole! By Royston Wild - Friday, 8 April, 2016 RDSB Shareprice was at £17.40 Can 1st Quarter Winners Royal Dutch Shell Plc (+10%), Unilever plc (+8%) & KAZ Minerals PLC (+67%) Keep Climbing? By Royston Wild - Friday, 1 April, 2016 RDSB Shareprice was at £16.83 Is It Finally Time To Give Up On Royal Dutch Shell Plc? By Royston Wild - Thursday, 24 March, 2016 RDSB Shareprice was at £16.88 Is Royal Dutch Shell Plc In Danger Of A Colossal Correction? By Royston Wild - Thursday, 17 March, 2016 RDSB Shareprice was at £17.38 Why Royal Dutch Shell Plc¢â‚¬â„¢s Dividend Outlook Should Scare You By Royston Wild - Thursday, 10 March, 2016 RDSB Shareprice was at £16.41 Are Lloyds Banking Group PLC & Royal Dutch Shell Plc REALLY Great Value? By Royston Wild - Monday, 29 February, 2016 RDSB Shareprice was at £16.45 When Will Shares In Royal Dutch Shell Plc Finally Reach Bottom? By Royston Wild - Wednesday, 17 February, 2016 His comment: I believe much further trouble is in store for Shell looking ahead and expect shares to keep on falling. RDSB Shareprice was at £16.36 Royal Dutch Shell Plc & Vodafone Group plc: Value Titans Or Value Traps? By Royston Wild - Tuesday, 9 February, 2016 RDSB Shareprice was at £14.61 Why Royal Dutch Shell Plc Shares Could Easily Topple Another 15%! By Royston Wild - Friday, 29 January, 2016 His comment: A subsequent re-rating of Shell¢â‚¬â„¢s share price would leave the oil leviathan dealing at £12.80 per share, representing a vast 15% reduction from current levels. But even this projection be considered optimistic, in my opinion. RDSB Shareprice was at £15.21 Why Buying BP plc & Royal Dutch Shell Plc Is Utter Madness! By Royston Wild - Friday, 15 January, 2016 His comment: I believe investors should resist attempting to pick up a bargain. RDSB Shareprice was at £13.51 Royal Dutch Shell Plc & GlaxoSmithKline plc: Brilliant Bargains Or Value Traps? By Royston Wild - Friday, 8 January, 2016 His comment: I believe Royal Dutch Shell (LSE: RDSB) can be considered a bona-fide value trap at the present time. RDSB Shareprice was at £13.75
waldron: Royal Dutch Shell Scrip Dividend Programme Reference Share Price 25/05/2017 7:45am UK Regulatory (RNS & others) TIDMRDSA TIDMRDSB ROYAL DUTCH SHELL PLC FIRST QUARTER 2017 SCRIP DIVIDEND PROGRAMME REFERENCE SHARE PRICE The Board of Royal Dutch Shell plc ("RDS") today announced the Reference Share Price in respect of the first quarter interim dividend of 2017, which was announced on May 4, 2017 at $0.47 per A ordinary share ("A Share") and B ordinary share ("B Share") and $0.94 per American Depository Share ("ADS"). Reference Share Price The Reference Share price is used for calculating a Participating Shareholder's entitlement under the Scrip Dividend Programme, as defined below. Q1 2017 Reference Share price (US$) 27.526 The Reference Share Price is the US dollar equivalent of the average of the closing price for the Company's A Shares listed on Euronext Amsterdam for the five dealing days commencing on (and including) the date on which the Shares are first quoted ex-dividend in respect of the relevant dividend. The Reference Share Price is calculated by reference to the Euronext Amsterdam closing price in euro. The US dollar equivalent of the closing price on each of the dealing days referred to above is calculated using a market currency exchange rate prevailing at the time. Reference ADS Price ADS stands for "American Depositary Share". ADR stands for "American Depositary Receipt". An ADR is a certificate that evidences ADSs (though the terms ADR and ADS are often used interchangeably). ADSs are listed on the NYSE under the symbols RDS.A and RDS.B. Each ADS represents two ordinary shares, two ordinary A Shares in the case of RDS.A or two ordinary B Shares in the case of RDS.B. Q1 2017 Reference ADS price (US$) 55.052 The Reference ADS Price equals the Reference Share Price of the two A Shares underlying each new A ADS. Scrip Dividend Programme RDS provides shareholders with a choice to receive dividends in cash or in shares via the Scrip Dividend Programme (the "Programme"). Under the Programme shareholders can increase their shareholding in RDS by choosing to receive new shares instead of cash dividends, if approved by the Board. Only new A Shares will be issued under the Programme, including to shareholders who currently hold B Shares. In some countries, joining the Programme may currently offer a tax advantage compared with receiving cash dividends. In particular, dividends paid out as shares by RDS will not be subject to Dutch dividend withholding tax (currently 15 per cent), unlike cash dividends paid on A shares, and they will not generally be taxed on receipt by a UK shareholder or a Dutch shareholder. Shareholders who elect to join the Programme will increase the number of shares held in RDS without having to buy existing shares in the market, thereby avoiding associated dealing costs. Shareholders who do not join the Programme will continue to receive in cash any dividends approved by the Board. Shareholders who held only B Shares and joined the Programme are reminded they will need to make a Scrip Dividend Election in respect of their new A Shares if they wish to join the Programme in respect of such new shares. However, this is only necessary if the shareholder has not previously made a Scrip Dividend Election in respect of any new A Shares issued. For further information on the Programme, including how to join if you are eligible, please refer to the appropriate publication available on Royal Dutch Shell plc The Hague, May 25, 2017
fjgooner: Good morning La Forge, I can’t possibly offer links to a future event. However, I can offer some of the influences that shape my personal view for a RDSB share price of £28 By 2017Q2 Results. So let's start with the target being discussed - £28. That is 17.77% higher than the current share price. 2017Q2 Results are likely to be published by the end of July - so that is approximately 27.5 weeks from Monday. So we are looking at an average increase in share price of just under 0.65% per week - obviously smoothing the peaks, troughs and any pullbacks along the way. So what key factors could be in play during these next 27 weeks? In the shortest term, I’d suggest currency movements. Share prices of FTSE100 constituents that earn profits in dollars but report in pounds sterling have benefitted since the Brexit vote as the pound significantly weakened against the dollar. So it would seem reasonable to expect that further movements will be similarly reflected both in the base share prices and any dividends paid of such companies. Just today in the Sunday Times there was an article entitled Theresa May calls for ‘clean and hard’ Brexit . Within that article it was stated that Downing Street staff expect her words to cause a “market correction” that could lead to a fresh fall in the pound. This could give an immediate lift to shares such as RDSB. Thereafter we will have the publication of Shell’s own results for 06Q4, 07Q1 and 07Q2 on February 4th, May 4th and July 28th. We already know that 06Q4 covers a period where commodity prices had recovered substantially by comparison to prior quarters and, so far, this has continued into 07Q1. Unless the OPEC deal unravels and commodity prices reverse, I find it hard to imagine that the reporting of any of these periods will be met negatively by the market. And whilst we’re on that subject, we have a few OPEC related dates during this period. Late last year, the Russians were suggesting that an OPEC/non-OPEC monitoring group should meet somewhere around January 20th to assess the initial implementation and compliance of the agreement. Thereafter, there is the next Ordinary Meeting of OPEC that will convene in Vienna, Austria, on the 25th May. This will be followed shortly by the completion of the first 6-month term of the OPEC production cut agreement at the end of June. Presumably this will be accompanied by further details on compliance and confirmation – and whether a second 6 months of cuts will be implemented. All of these are likely to have some influence of the price of energy stocks such as Shell. Saudi Arabia’s intention to get the float of Aramco off to a good start will, IMHO, mean that there will be a lot of pressure to get all of the compliance and associated news in the meetings above to be as positive as possible. Of course, any positive momentum can be checked by other negative and macro factors along the way, but all in all I’m generally positive enough to envisage an average Shell share price build of 0.65% per week over the next 27.5 weeks to meet that £28 target. But as ever, do your own research and I wish you all the best of luck with your investment decision whichever way you go. FJ
Shell B share price data is direct from the London Stock Exchange
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