Shell’s dividend yield
Royal Dutch Shell (RDS.A) occupies the top position among the six integrated energy stocks being discussed in this series. The company has the second-largest market cap of $256 billion among the six stocks.
Shell has a current dividend yield of 6.0%. In the current quarter, Shell will pay a dividend of $0.94 per share. Shell has paid dividends consistently over the past three years. The dividends have been stable during this period. Three years ago, Shell made a quarterly dividend payment of $0.94 per share. In the past three years, Shell’s stock price has risen 28%.
Shell trades at a forward PE ratio of 11.4x, which is below the average forward PE ratio of 14.1x. Shell trades at 5.0x the forward EV-to-EBITDA multiple, which is below the peer average of 5.8x.
Shell has sound financials. Shell’s total debt-to-total capital ratio was below the industry average in 2018, which points to a favorable scenario. The company had a cash flow surplus in 2018.
Shell has a strong upstream portfolio. The company has a series of upstream projects that are expected to bring production growth. Read Shell Strengthened Last Year: Where’s It Headed? to learn more. Analysts expect Shell’s earnings to rise 2% in 2019, which is better than the average expected fall of 6% among its peers.
Next, we’ll discuss BP.