The Shell Stock in Analysis
Currently, the Shell stock impresses with a stable performance primarily driven by high dividends and significant share buybacks. Here we take a detailed look at the key factors shaping this trend.
Attractive Dividend Policy
- Q1 2025 Dividend: Shell has announced a dividend of $0.358 per share for the first quarter of 2025.
- Total Dividend over the Last 12 Months: Over the past year, Shell paid a total of $1.41 per share, corresponding to a dividend yield of approximately 4.34%.
- Projected Dividend: A dividend of about $1.62 per share is expected in the next twelve months.
Significant Share Buybacks
- Current Buyback Plans: Despite a decline in profits, Shell plans to allocate $3.5 billion for share buybacks in the next three months.
- Strategic Importance: These buybacks are part of the strategic corporate direction published in March 2025, aimed at rewarding shareholders and strengthening confidence in financial stability.
Strong Financial Results
- Q1 2025 Results: With an adjusted profit of $5.6 billion and cash flow of $11.9 billion, Shell shows operational strength.
- Profit Decline: Net profit decreased by 28% to $5.58 billion, which, however, does not impact strategic investments.
Overall, Shell is banking on a strong financial position with high dividends and extensive share buybacks, offering investors attractive returns.