You are here: Home - Investing -

Share Centre share of the week: Royal Dutch Shell

0
Written by:
14/04/2015
Helal Miah, investment research analyst at The Share Centre, picks Royal Dutch Shell as share of the week.

“As the largest listed company in the UK, Royal Dutch Shell is a sector leader producing fuels, chemicals and lubricants worldwide.

“This week, the company confirmed its takeover of BG Group, and to some investors the premium of 50 per cent to the close price prior to the announcement can be considered as high. However, we believe Royal Dutch Shell will continue to be a very good dividend payer for many years and the timing of the acquisition – when oil prices are low – could in hindsight be seen as astute. This acquisition makes strategic sense, adding 25 per cent to Shell’s proven oil and gas reserves and 20 per cent to annual production and lead to annual cost savings of $2.5 billion.

“The group’s portfolio will undergo major reorganisation in the years to come, which may bring positive rewards to investors in future. The dividend yield in excess of 5.5 per cent remains very attractive and the share price is likely to be supported by a share buyback program.

“Despite the fall in the oil price, we continue to recommend Royal Dutch Shell as a ‘buy’ for low risk income seekers. We believe it still represents a core holding for many portfolios due to the relatively stable cash flows and attractive income that it generates.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week