Recent buy – Royal Duch Shell (RDSA)

2020 has just hit the calender and I was sitting on that pile of cash. This was just too tempting to trigger another buy. After my first investment into Oil companies XOM and BP I was more then eager to play it safe and bet on 3 major oil companies.

Shell-logoThats right the 3rd oil giant – Royal Duch Shell. The only reason I did not bought it along with BP was that its traded only on London and Amsterdam stock exchanges and they are costly, but yesterday had a “ahh what the heck” moment and bought 37 shares for 26,97 EUR paying 1.033 EUR that includes massive 35 EUR purchase cost or ~3,5%. But this should payoff durring first year as company pay 0,4232 EUR quarterly dividends and that is a massive 5,2% post-tax (-15%) dividend yield bringing us additional 53 EUR of forward annual dividends. Love the 12 P/E ratio and dividend payout ratio of 75% looks to be even better then XOM or BP. Love their strong balance with equity ratio of almost 50% and NetDebt/EBITDA (95-15/52) of 1,5x. This brings me comfort investing into this company in L/T.  Company is quite engaged in renewables and also has high stake. Gas is considered as more eco friendly then oil, hence is less exposed to environmental shifts where Coil is being killed and Oil less consumed and replaced. This is why I think this company should do ok in next 20-30y. Now that I have equal ~1kEUR investment in all major oil companies I can say that my position in energy sector is filled for now.

Our forward annual passive income has just crossed the 700 EUR line 709 EUR or 59 EUR / mo. I think we are getting somewhere 🙂

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