Acquisition RDS.B

royal-dutch-shell-logoThis recent acquisition I decided to add to my current ownership in Royal Dutch Shell (RDS.B). I truly believe this is one of the best oil companies on the planet. Plus, we are coming out of the oil crash and good times are only up ahead in this industry. I really do think there was a perfect purchase of this company back in February 2016 when the stock price was under $40 per share, though you really must of had balls to buy at that time. That was also the one of the worst times for oil companies and future of them. Since then, the share price has been on a steady incline and dividend stable for the time being. We will see what the future holds to this company, but in the mean time I will gladly enjoy receiving the robust dividends and reinvesting them further.

Company Overview: Royal Dutch Shell plc was founded in 1907 and is headquartered in The Hague, Netherlands. Basically, it operates as an independent oil and gas company worldwide. The company explores for and extracts crude oil, natural gas, and natural gas liquids. It also converts natural gas to liquids to provide fuels and other products, markets and trades crude oil and natural gas, transports oil, liquefies and transports gas, extracts bitumen from mined oil sands and converts it to synthetic crude oil, and generates electricity from wind energy. Additionally, it is involved in the exploration, development, production, liquefaction, and marketing of hydrocarbons; purchase, sale, and shipping of LNG and regasified natural gas, production of base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. The company holds interests in approximately 23 refineries, 100 distribution terminals and 770 supply points. It sells fuels under the Shell V-Power brand.

  • Dividend Yield: 7.2%
  • 5Yr Dividend Growth Rate: 4.0%
  • Payout Ratio: 194%
  • P/E: 49.2
  • Consecutive Years of Dividend Raises: 4
  • Dividend Payout: Quaterly

I purchased 38 shares for the price of $52.10 adding $142.88 to my annual dividend income.

It is the 8th time I am initiating a stock acquisition this year. This transaction is my additional purchase of RDS.B shares into the portfolio. As of today, I now hold 82 shares of this company. Currently, RDS.B ownership stake represents to be around 5.0% of my current portfolio value.

The 12-month dividend income increased to $2,850.

Thank you for reading & have a great day!

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6 Comments

  1. Agent Dividend on November 22, 2016 at 11:04

    Good buy DV! I’ve been contemplating adding RDS.B to my portfolio, but already have BP and XOM as two of my higher holdings. The YOC for RDS.B is very enticing and I do believe that oil will maintain or continue to climb in 2017.

    • DividendVet on November 22, 2016 at 19:55

      Thanks, there are many to pick from in the beat up oil industry. Though, I like Shell the best out of them. Been happy customer and continued shareholder for the long haul.

  2. DividendFamilyGuy on November 23, 2016 at 08:05

    Yeah I have enough in XOM right now that I will not be adding any other energy companies. Forward dividends are looking good DivVet.
    Peace,
    DFG

    • DividendVet on November 24, 2016 at 07:28

      Just building cash flow on top of cash flow in a slow but consistent way.

      Thanks for stopping by!

  3. DiningOnDividends on November 26, 2016 at 12:17

    I just picked up some RDS.B as well. After watching Baytex and Crescent Point (both Canadian energy producers) cut or eliminate their dividends in the last year, then languish for an extended period, I decided to sell both and use the proceeds to purchase RDS.B. My thinking was that if oil does pick up, I will benefit. In the interim I receive a nice dividend, something that I was not getting from either Baytex or Crescent Point.

    • DividendVet on November 26, 2016 at 14:02

      Good way of noticing what was not working, learning from what has happened and instead of quitting like majority would have done, you reshuffled some investments and reinvested into a great company. No matter what oil does from here on out, dividends will be paid for waiting. 🙂

      Take care.

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