The last time Shell was analysed on this site was in December 2015. In December 2015 the price of an ADR was $48.43 and the yield was 7.8% per share when the dividend was $1.88 per year per share (or a dividend of $3.76 per ADR). Since 2015 the price per ADR has risen to $65.23, which a rise of 35% in two and half years.
In the last two years the dividend has remained static so the current yield for new purchasers of Shell common stock is around 5.7%. The main question now is whether value investors can consider new purchases of Shell common stock. The detailed analysis shows that Shell is still good value at current prices although not as goods in 2015. As the price has risen the risk to value investors has increased, but not to the extent the would cause a value to sell.
The new analysis confirms that Shell remains conservatively financed and looks reasonable value at the current price.
Important note for investors. The NYSE tickers RDS-A and RDS-B are American Depositary Receipts representing two shares. Shell reports financial figures in USD and reports items in the Annual Report on a ‘per share’ basis. In order to get the correct figures for yield and earnings per share investors must adjust the data in the Annual Report to the share price on the NYSE, by dividing the share price by two or multiplying the per share number by two. Other research sites do not correctly value Royal Dutch Shell.
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