Royal Dutch Shell Plc : RDS.A-US: Dividend Analysis : August 11th, 2017 (record date) : By the numbers : September 12, 2017

Our analysis is based on comparing Royal Dutch Shell Plc with the following peers – Exxon Mobil Corporation, Chevron Corporation, Total SA Sponsored ADR Class B, PetroChina Company Limited Sponsored ADR, BP p.l.c. Sponsored ADR, Marathon Petroleum Corporation, Repsol SA Sponsored ADR, Statoil ASA Sponsored ADR and Eni SpA Sponsored ADR (XOM-US, CVX-US, TOT-US, PTR-US, BP-US, MPC-US, REPYY-US, STO-US and E-US).

Royal Dutch Shell Plc’s dividend yield is 5.62 percent and its dividend payout is 170.91 percent. This compares to a peer median dividend yield of 3.84 percent and a payout level of 117.17 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 67 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), RDS.A-US paid a high quality dividend, which represents a yield of 5.62% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 2.23x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), RDS.A-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.31x), investing cash flow (coverage of -1.32x), issuance cash flow (coverage of -0.25x) and twelve-month prior cash (coverage of 1.42x), for a total dividend coverage of 3.23x.

RDS.A-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.31x) and net share buybacks (coverage of -0.02x). Thus, the total coverage including share buybacks is 3.25x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 5.75 5.22 7.23 10.27 8 5.62
Dividend Payout (%) 34.26 59.02 67.26 349.21 277.43 170.91

A complete list of metrics and analysis is available on the company page.

Company Profile

Royal Dutch Shell Plc engages in the oil and natural gas production. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which are engaged in exploring for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil; and wind energy. The Downstream segment engages in manufacturing, supply and distribution, and marketing activities for oil products and chemicals; alternative energy; and CO2 management. The Corporate segment represents the support functions, comprising holdings and treasury, headquarters, central functions and its self-insurance activities. The company was founded in February 1907 and is headquartered in The Hague, Netherlands.

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