While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. I see the dividend cut as good news. This is the first time they have cut the dividend since WW2. That tells you something. The dividend will come back. In the meantime this gives them a chance to pay back debt. Buy it while its at the bottom. They are well manges and one the best at coming out of bad times. The dividend cut was baded on where oil could be heaed. They wanted to be safe then sorry. XOM and others should do the same if they were smart.
Straight from the CEO mouth
We think the business is fundamentally a much better one following the dividend cut, and expect debt levels to fall rapidly over 2021-22
COP did the same back in 2016 and slowly increased the dividend. I see the same happening to RDS.A
As of the end of 2019, Shell had $18.1 billion in cash and equivalents on its balance sheet. Meanwhile, its long-term debt load of $65.9 billion is on the lower end of the spectrum compared to its mega-oil peers, at 1.2 times EBITDA compared to a range of 0.9 times to 2.3 times. It has a high-grade credit rating of AA-/Aa2 from the major ratings agencies, which should ensure it can access additional capital if needed.
Straight from the CEO mouth
We think the business is fundamentally a much better one following the dividend cut, and expect debt levels to fall rapidly over 2021-22
COP did the same back in 2016 and slowly increased the dividend. I see the same happening to RDS.A
As of the end of 2019, Shell had $18.1 billion in cash and equivalents on its balance sheet. Meanwhile, its long-term debt load of $65.9 billion is on the lower end of the spectrum compared to its mega-oil peers, at 1.2 times EBITDA compared to a range of 0.9 times to 2.3 times. It has a high-grade credit rating of AA-/Aa2 from the major ratings agencies, which should ensure it can access additional capital if needed.