What Analysts Estimate for Shell’s Dividend Payment

Maitali Ramkumar - Author

Sep. 4 2017, Updated 10:36 a.m. ET

Shell’s dividend payment

Royal Dutch Shell’s (RDS.A) dividend payments have remained constant in the past few years. In 3Q17, Shell’s gross dividend payment is at $0.94 per share (or ADS), which has remained steady over the past two years. The dividend was announced on July 28, 2017, and will be paid on September 18, 2017.

Wall Street analysts predict that Shell’s dividend payment will stay flat quarter-over-quarter in 4Q17 at $0.94 per share. Analysts don’t anticipate any rise or fall in dividend payments likely due to the mixed trend in the upstream and the downstream segments. Oil prices, which impact the upstream segment, have fallen quarter-over-quarter (or QoQ) in 3Q17. However, refining margins, which affect the downstream segment, have risen quarter-over-quarter in 3Q17.

WTI prices on average have fallen 1.4% quarter-over-quarter to $47.5 per barrel in 3Q17. However, the US Gulf Coast WTI 3-2-1, a benchmark crack, has risen 15.2% quarter-over-quarter to $17.3 per barrel in 3Q17.

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Shell and peers’ dividend yield

Shell’s current dividend yield stands at 6.8%, a rise of 6.3% witnessed in 3Q15. In the same period, ExxonMobil’s (XOM) dividend yield rose from 3.7% to 4.0%, whereas BP’s (BP) dividend yield fell from 7.1% in 3Q15 to the current level of 6.9%. Also, Chevron’s (CVX) dividend yield rose from 3.8% to 4.0%. In comparison, the SPDR S&P 500 ETF’s (SPY) dividend yield rose from 1.8% in 3Q15 to the current level of 1.9%.

Other global players like Total (TOT) and Statoil (STO) saw a fall in dividend yields from 5.4% and 5.7%, respectively, in 3Q15, to current levels of 5.1% and 4.7%, respectively.


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