Shell declared its dividend
Royal Dutch Shell (RDS.A) posted its first-quarter earnings on May 2. The company also announced dividends and the fourth tranche of its share buyback program.
Shell’s dividend payments have remained steady in the past few years. In the second quarter, Shell will pay a dividend of $0.94 per share on June 24. Shell’s dividend payment has remained flat year-over-year in the second quarter.
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Shell’s share buybacks
Shell has continually strived to improve shareholders’ returns. The company plans to buy back shares of ~$25 billion until 2020. Shell aims to share higher earnings and cash flows with shareholders. The company plans to offset the dilution caused due to the scrip dividend program and the acquisition of the BG Group.
Shell announced the fourth tranche of its share buyback program. The company is expected to buy a maximum of ~$2.75 billion worth of shares until July 29. The fourth tranche follows the first, second, and third tranches where $6.75 billion of aggregate shares were repurchased between July 26, 2018, and April 29, 2019.
Peers’ dividend yield
Currently, Shell’s dividend yield is 6.0%.
Shell’s peers with lower dividend yields include ExxonMobil (XOM), Chevron (CVX), Equinor (EQNR), and PetroChina (PTR). ExxonMobil and Equinor’s yields are 4.4% each. Chevron and PetroChina’s yields are 4.0% and 4.2%, respectively. BP (BP) and Total’s (TOT) current dividend yields are 5.7% and 5.3%, respectively—marginally lower than Shell. Suncor Energy’s (SU) dividend yield is 3.8%—the lowest among its peers.