This 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!