Policy: “To grow the US dollar dividend in line with our view of the underlying earnings and cash flow of Shell”
Yield: 7.1 per cent
Payment: Quarterly, declared in dollars, paid in sterling (class ‘B’ shares)
Last cut: 1945 (as Royal Dutch)
IC TIP:
Buy
at
2,079p
Strictly speaking, a dividend yield above 7 per cent should be a red flag to investors. It’s the market’s way of saying future returns are in doubt. For Royal Dutch Shell (RDSB), this has been a familiar refrain ever since the oil market said goodbye to $100-a-barrel prices in 2014, and serious questions concerning the oil major’s commitment to shareholder returns started to grow.