Will Royal Dutch Shell Cut Its Dividend?
From an article by Tim McAleenan Jr. published 19 March 2015 by Seeking Alpha
Will Royal Dutch Shell Cut Its Dividend?
Summary
- Royal Dutch Shell’s current dividend payout ratio is over 90%, putting the safety of the dividend in question.
- The good news for investors is that the company is sitting on $21 billion in cash, and likely has the ability to continue paying its dividend throughout continued low prices.
- The bad news for investors is that Royal Dutch Shell’s reserve replacement rate is only 47%, and this will affect the company’s long-term earnings power for producing oil.
The TRUTH will set you FREE.
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