A question for GRG55

[Mega]

HI G
Ok, I got two listings for Royal Dutch Shell:-

Royal Dutch Shell "A" shares
Royal Dutch Shell "B" Shares

Which is better, or could I just be better to 50/50 split between them?
Mike

[FrankL]

Re: A question for GRG55

They just slashed their dividends. Are you sure you want to buy it?

[Mega]

Re: A question for GRG55

Soon
Mike

[FrankL]

Re: A question for GRG55

Soon
Mike

If the following link is still up to date, you may prefer RDSB shares as listed on the LSE:

https://www.google.com/amp/s/www.for...t-you-buy/amp/

[Mega]

Re: A question for GRG55

Thanks frank!
Ok So "A" is listed in Europe, "B" is listed in London........are they the same thing?
Cheers
Mike

[GRG55]

Re: A question for GRG55

HI G
Ok, I got two listings for Royal Dutch Shell:-

Royal Dutch Shell "A" shares
Royal Dutch Shell "B" Shares

Which is better, or could I just be better to 50/50 split between them?
Mike

Mike: If you are a UK resident you will want to own the London-listed B shares. If you buy the Dutch listed A shares, as a non-resident of the Euro currency zone you will be subject to withholding tax under Dutch law on the dividends. There is no material difference in the A and B shares, other than the former (A shares) are subject to Dutch listing and tax law and the B shares are regulated under U.K. law.

Royal Dutch Shell was a jointly managed pair of companies from more than 100 years ago - Royal Dutch Petroleum and UK based Shell Trading and Transport. For many decades the shares were of two separate but jointly managed companies listed in their original jurisdictions. However, in 2005 the Royal Dutch and Shell T&T were formally joined into one company with dual UK and Dutch listings, so the A and B shares now represent the same entity.

If you want to know more about the history of RDS look up Calouste Sarkis Gulbenkian (Mr. 5%) or read Daniel Yergin's book "The Prize".

They just slashed their dividends. Are you sure you want to buy it?

Far better to buy a company AFTER it has slashed its dividends than before.

[This is NOT a recommendation to buy or not to buy the shares of RDS, just an observation to manage capital]

[FrankL]

Re: A question for GRG55

Far better to buy a company AFTER it has slashed its dividends than before.

[This is NOT a recommendation to buy or not to buy the shares of RDS, just an observation to manage capital]

Do you mean to say that the slashing of dividend indicates better management of their capital, and that this mean better long term share value?
Buying after slashing of dividends to get a more attractive share price (after a short sell-off period)?
What about risk of future divestment from investment funds that held on to this share for dividend purposes?

[Mega]

Re: A question for GRG55

Thanks Guys........I wait till after Lockdown till I buy them
Mike

[jpatter666]

Re: A question for GRG55

Do you mean to say that the slashing of dividend indicates better management of their capital, and that this mean better long term share value?
Buying after slashing of dividends to get a more attractive share price (after a short sell-off period)?
What about risk of future divestment from investment funds that held on to this share for dividend purposes?

All reasons why you wait until *after* but as you say you might have to wait for a period. Usually the downside after cutting the dividend is near the bottom. It also shows that management has woken up and gotten a clue -- that's one of my biggest markers during a crash. Who got right on the ball and who tried to wait it out until forced.

You're right on the dividend holder point -- you need to know if this was one of those stocks. Another marker is whether the stocks risks going below $5 (i.e. watch GE!) because I believe some funds aren't allowed to hold such stocks (I need to reconfirm that one...)