50% off Premium Yearly
Royal Dutch Shell PLC (B)RDS.BCOMMENTApr 08, 2015Stock price when the opinion was issued
As of Jan 28, 2022. Market Open.
The ESG movement is affecting stocks like RDS. Was pulled into the courts by activists. Many large companies have on going lawsuits and are shared in quarterly reports. It's not too big of an issue. They are transitioning into a renewable company with Hydrogen and wind farms. Big oil will be a natural beneficiaries of renewables. The dividend is sustainable and growth outlook is good. Oil is also a recovery trade.
Fell to book value, but jumped on Pfizer announcement. Intrinsic value is 60% higher than current value. Fairly indifferent balance sheet. If it can break above $31, could easily go as high as $42. No yield.
Pays over a 7% yield. All oil stocks have been hammered, but it made a good deal when it bought British Gas five years ago. They're now an LNG company more than oil. Gas is the cleanest carbon fuel. Last Friday, oil stocks bottomed, though the stocks are gushing cash. Oil will stick around for another 15-20 years. So, these stocks are worth looking at unless you don't care for carbon.
Just agreed to buy BG Group. BG’s dividend is higher, so by moving it into this company, they are going to save some money. The dividend is definitely sustainable. This is a good place if you just want large cap, but it really hasn’t done much over the last decade. There are other places where you can find better per share growth.