Thursday, 22 September 2016

8. Stock dividends

Where earlier I have introduced my plans for keeping track of the dividend stocks that pay out a sum per share. There’s also a few golden stocks in my portfolio generating new shares over time. These do not really fit into the format as I want to display, so another one is to be found.

One prime example of these shares is Royal Dutch Shell. From stock exchange perspective it’s an example of a decent+ performance. Therefore I will not go further into details on any moral or immoral battles to be fought internally before joining the great lot of RDS share owners.  

Back to dividends, RDS (graph of past 10 years performance to be found here) sells for around 21 EUR and has a history of dividends yielding +5% in quarterly scheme. Which is fairly huge in Europe for a company that size. Have you seen the market capitalization? 176.888B is significant in my opinion. (Hint: hover above the tems you don’t know and Google will tell you what is meant. Great stuff.)

Because all stock dividends are returned into the portfolio immediately they are accounted for automatically with the next dividend date. Resulting in more or less the following graph:

Well, this may look like an explosion but actually I’ve calculated my current RDS shares till the year 2080…

Also, this graph does not care about any decisions of the company. They may well decide to cut or even quit dividends. Not many people will like it, but I don’t have the illusion that they can’t or won’t. Should circumstances require so this quarter-yearly-party will come to full shrieking stop. Hence, I don’t bet at this single horse in particular. Not even taken into account the business they’re in: O&G are way from back in the green (no golf terms here, also not talking about renewables, The green is the production levels (and maybe also public opinions) leaving an instable time for RDS.

At least, I presented the third way of keeping track of my dividend portfolio: the stock dividends. This adds up to:
1: USD listings
2: EUR listings
3: Stock dividends (USD / EUR mix)

Having been around on the AEX for some years now: the (apparently widely known) saying Never sell Shell is awfully true (most of the time).

Thanks for reading, maybe sharing or pointing my search out to friends (who might have been stuck around with the same idea to blog about this hobby of making money with money).

With kind regards,

The Dutch lake house.

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