Royal Dutch Shell plc (AMS:RDSA) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of RDSA, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Royal Dutch Shell here.
6 star dividend payer with adequate balance sheet
RDSA’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. RDSA appears to have made good use of debt, producing operating cash levels of 0.42x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
RDSA’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 5.7%.
Next Steps:
For Royal Dutch Shell, I’ve compiled three key factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for RDSA’s future growth? Take a look at our free research report of analyst consensus for RDSA’s outlook.
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Historical Performance: What has RDSA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RDSA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.