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Better sell Shell

After its dividend cut and the prospect of a slow recovery, Shell's proposition for investors looks far weaker
Better sell Shell

Royal Dutch Shell (RDSB) surprised analysts by cutting its dividend by two-thirds at the start of May. This call was made on the back of oil plummeting below $30 (£24) per barrel and demand for its refined products falling through the floor.

IC TIP: Sell at 1,234p
Tip style
Risk rating
Long Term
Bull points

Uncertain oil market

Yield now lower than competitors

Vague transition plans

High spending needed

Bear points

Action taken to get through downturn

Scale to weather low oil prices

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