Extracts from an article by Lior Cohen: JAN 14, 2016
Shell’s stock shed 10% off its value over the last month, as the price of oil dwindled.
Following this fall, the dividend yield is currently at 9.4% – a historic level.
Some investors think that because the company paid and raised its dividend since WW2, it means it won’t deviate at this stage. But let’s not forget that times are changing. And if Shell were to face say a Gulf of Mexico oil spill as BP (NYSE:BP) encountered back in 2010, you can bet the dividend will be eliminated in a heartbeat – especially in times of low oil prices. But even without a major oil spill, the current oil price environment stresses Shell’s cash reserves.
With oil prices at the low $30s, Shell will have to cut down capital spending and reevaluate its operations. It also recorded big impairment charges with respect to its projects in Alaska and Alberta, Canada. And the ongoing low oil prices are likely to result in additional impairment provisions that will only intensify the growing debt burden. Therefore, the company is likely to present in the next earnings report revised down guidance for its 2016 capex and plans to cut down production.
Given the current weakness of oil prices, a reduction in the dividend could create anxiety among investors to drop the stock, which will only push further down its price.
But if oil prices maintain their low levels, we are likely to see a shift in the management’s tone as the year winds down. And perhaps by the end of the year the company may eventually start talking about reducing its dividend.
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.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
