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Heads it's BP Tales it's SHELL RDSB
BOB 2
Posted: 19 May 2017 20:17:18(UTC)
#1

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SO THE QUESTION IS NOW THE OIL PRICE
IS RISING,AND PRODUCTION IS BEING CUT BACK?
IS IT BP OR SHELL
BP DIVIDEND YIELD TODAY IS 6.47% AND
SHELL RDSB DIVIDEND YIELD IS 6.65%

RE INTERACTIVE INVESTOR
http://www.iii.co.uk/art...-you-invest-shell-or-bp


By Sarah McFarlane and Biman Mukherji
Updated May 19, 2017 8:14 a.m. ET
Crude oil futures rose Friday, building on overnight gains in the U.S., as investors showed optimism for next week’s OPEC meeting, where production cuts are expected to be extended.

Brent crude, the global oil benchmark, rose 1.1% to $53.12 a barrel
OPEC meeting is on Thursday 25th May 2017


http://www.reuters.com/a...lobal-oil-idUSKCN18E06K
any thoughts on the matter





.....................................................................................................................................................
ADD ON 25/05/2017
LIVE WEBCAST OF OPEC 172 MEETING TODAY click
http://www.opec.org/opec...b/en/multimedia/349.htm

....................................................................................................................................................

Price development Latest 1 week 1 month 3 months 6 months 1 year
 
  .....................53.79...... 5.8% ...... 1.7% ...... -4.1%...... 15.0% ...... 10.2%


OF INTEREST DIFFERENCE BETWEEN RDSA & RDSB

To begin, taxes are a key difference between the two issuances. The difference is due to this construct called the "dividend access mechanism." The B shares have the dividend access mechanism, while the A shares do not. What the dividend access mechanism allows B shareholders to do is to forego withholding tax (15% under Dutch law, verified by the Dutch Revenue Service). Withholding tax reduces the size of your investment earnings, so taking the right steps to not be subject to this is highly advised.

So, what is a withholding tax? Why is a withholding tax present? Quite simply, it is Dutch law: "Any payment by the Company will be subject to Dutch withholding tax (unless an exemption is obtained under Dutch law or under the provisions of an applicable tax treaty)". The withholding tax just means that 15% of your dividend received is cut. So, you'll effectively receive 85% in a net payout.
dyfed
Posted: 20 May 2017 08:51:52(UTC)
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Too much oil around, other forms of energy coming on stream. IMHO nice divis but short term hold only and be prepared to get out quick with a stop loss !
3 users thanked dyfed for this post.
Mickey on 20/05/2017(UTC), BOB 2 on 20/05/2017(UTC), Keith Cobby on 20/05/2017(UTC)
Sara G
Posted: 20 May 2017 09:14:47(UTC)
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It's certainly not a sector you can afford to take your eye off...

I hold BP as I think it is still somewhat undervalued, the downstream operations offset the impact of cheaper oil, and demand for oil is still steady / increasing (the dividend is an added bonus). There was also talk of a takeover not too long ago. I'm aiming to hold to 2020 unless something dramatic happens in the meantime.

In terms of exploration, the bigger gains are likely to come from smaller companies (I recently bought RSE on a 19% discount).

Dyfed is right though, other energy sources are the future, so it might make sense to hedge bets with a clean energy ETF.
3 users thanked Sara G for this post.
dyfed on 20/05/2017(UTC), Mickey on 20/05/2017(UTC), BOB 2 on 20/05/2017(UTC)
Micawber
Posted: 20 May 2017 12:29:59(UTC)
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My money's on Shell:

- solved its upstream problems for the next decade with purchase of BG
- integrated downstream operations assure cash flow
- cash flow already covering dividends/debt repayment and further asset sales on the agenda to reduce BG-related debt
- about one third of revenues/profits come from LNG not oil. LNG is cleaner and likely to increase in importance as an interim stage to cleaner energy
- sturdy transport element (lately increased maritime LNG transport capability)

BP's too stuck into Russia for my liking, last time I went into it.

The Shell share price is about whether the dividend of (currently) 6.65% will be maintained. I think it will.
3 users thanked Micawber for this post.
Mickey on 20/05/2017(UTC), dyfed on 20/05/2017(UTC), BOB 2 on 20/05/2017(UTC)
Keith Cobby
Posted: 20 May 2017 16:09:58(UTC)
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The oil companies are ok if you require near term income, but further out i agree with Neil Woodford that they are liquidating themselves.
1 user thanked Keith Cobby for this post.
dyfed on 20/05/2017(UTC)
colin overton
Posted: 22 May 2017 00:12:34(UTC)
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I think this is a tough call. I've owned Shell "forever", although I have broken the old "golden rule" of Never Sell Shell. I still believe that (big) oil is a recovery play. The possible head winds are the old ones, over production for political reasons and "Greenwash". The over large divs are nice in the short term but relate to a share price ~ 30% higher and distracting for company long term growth. I had this choice 2-3 years ago and re-picked Shell.
Law Man
Posted: 22 May 2017 16:55:20(UTC)
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Last autumn I read an article in IC saying that oil companies have cut production and exploration for new oil fields, such that oil producers will do better in the medium term future.

As I held virtually no commodities producers I put 1% of my total in the I-Shares Oil & Gas producers ETF EPIC = SPOG.

So far - 20% down. I must be patient.
xcity
Posted: 22 May 2017 18:10:55(UTC)
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Law Man;47041 wrote:
As I held virtually no commodities producers I put 1% of my total in the I-Shares Oil & Gas producers ETF EPIC = SPOG.

So far - 20% down. I must be patient.

Shell was kicking around the 2000 level last autumn, so you wouldn't have lost much with that, even if you had bought at the peak. Ditto BP.

Medium term does look more positive for oil prices, but there's the shale and the bears to navigate before that. And when we get to that medium term, we'll have the present long term concerns coming into clearer sight.

I'm holding at current prices, but I'm keeping an eye on the horizon.
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