Shell looks compelling as it restores full cash dividend

The market is underestimating Shell's potential even though the firm hasn't earned an economic moat.

Allen Good, CFA 8 December, 2017 | 6:00PM
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Shell recently announced it would restore its full cash dividend with the fourth-quarter payment. The decision came earlier than we expected but is not entirely surprising as we estimate Shell's break-even at US$50/barrel next year. Shell also increased its annual organic free cash flow target by US$5 billion for 2019-21 and reiterated its plans to repurchase US$25 billion of shares during the next three years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Royal Dutch Shell PLC ADR Class B40.81 USD0.82Rating

About Author

Allen Good, CFA

Allen Good, CFA  Allen Good, CFA, is an energy strategist for Morningstar.

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