Royal Dutch Shell (RDS.B) is an integrated oil & gas company that offers a very safe dividend. The yield is currently a larger-than-normal 6.5% because the share price has underperformed the strong fundamentals of the business. The share price was down again last week (and it was down the whole month of November while the overall market sailed higher). This article describes an attractive income-generating options trade on Royal Dutch Shell that we believe is compelling to place today (and potentially over the next few days) as long at the price of RDS doesn’t move too dramatically before then.
Royal Dutch Shell: Stable Dividend (6.7% Yield) in a Volatile Sector?
Royal Dutch Shell (RDS.B) has a consistent history of paying dividends despite swings in oil and gas prices. The company has successfully used balance sheet and cost containment to sustain dividends during difficult times. This article provides a background on the company, analyzes its cash flow generation, dividend potential and finally concludes with our opinion on whether investors should add exposure to the company.