One cannot but admire CEO Ben van Beurden for his courage…
August 4, 2015
Summary
- Royal Dutch Shell is dead serious about protecting future dividend payments. CEO Van Beurden committed himself to paying attractive dividends in the next two years.
- Although I am impressed by Shell’s massive cost reduction plans and the slash in investments, I believe the dividends are still not fully covered by future cash flows.
- However, Shell’s strong balance sheet and the expected sale of non-core assets provide ample room for the company to keep distributing juicy dividends in the (near) future.
One cannot but admire CEO Ben van Beurden for his courage. Amidst the biggest oil crisis since the early seventies, the CEO is very clear about Shell’s (RDS.A, RDS.B) dividend intentions.
In a short clip on the company’s website, Van Beurden states that Shell is “committed to its dividend policy.” In an interview with Bloomberg, the CEO even calls dividends an “iconic aspect in Shell’s proposition to investors.”
Those are not just empty words. To my knowledge, the company did something that it has never done before: given a strong guidance for the next seven quarterly dividend payments. Despite the “challenging market conditions,” Shell intends to pay a total dividend of $1.88 per share this year ($3.76 per share for the ADR). The company even expects to distribute at least $1.88 per share next year. read more
Like this:
Like Loading...
This website and sisters
royaldutchshellplc.com,
shellnazihistory.com,
royaldutchshell.website,
johndonovan.website, and
shellnews.net,
are owned by
John Donovan. There is also a
Wikipedia segment.