Will Shell’s Dividend Payments Rise in Q2 2019?


Apr. 23 2019, Updated 4:09 p.m. ET

Shell’s dividend payment

Royal Dutch Shell (RDS.A) has paid steady dividends over the past few years. In Q1 2019, Shell paid a dividend of $0.94 per share (or ADS), which is equal to the dividend its paid in Q1 2017. The dividend was announced on January 31, 2019, and paid on March 25, 2019.

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Wall Street analysts expect Shell’s dividend payment per share to stay stable at $0.94 per share (or ADS) in Q2 2019, which could be because, since Q2 2014, Shell has steadily paid a quarterly dividend of $0.94 per share. So analysts might assume Shell will follow the trend and pay the same dividend in the first quarter. Besides, the company has a share repurchase program to extend the benefits of higher earnings and cash flows to shareholders.

Shell’s dividend yield

Shell’s dividend yield currently stands at 5.9%. It has fallen from 6.4% in Q1 2017. The fall in yield is due to a rise in Shell’s stock price over the stated period.

Shell has focused on improving shareholder returns. Shell plans to buy back shares of around $25 billion by 2020 to distribute the benefits of better earnings and cash flows with shareholders.

Currently, the third tranche of Shell’s share buyback program is ongoing. The company is expected to buy a maximum of around $2.5 billion worth of shares up to April 29, 2019, following the first and second tranches, wherein $4.5 billion in aggregate shares were repurchased.

Peers’ dividend yield

Shell has the best dividend yield compared to peers. BP (BP), Total (TOT), and ENI’s (E) dividend yields stand at 5.5%, 5.1%, and 5.5%, respectively. However, ExxonMobil (XOM), Chevron (CVX), and Equinor (EQNR) have lower dividend yields at 4.0%, 4.0%, and 4.1%, respectively.


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