A Closer Look at Royal Dutch Shell Plc (RDSB)’s Dividend Potential

How do Royal Dutch Shell’s dividend prospects rate against the competition?

Source: Digital Look

Royal Dutch Shell Plc (LON:RDSB) was recently dealing on a P/E readout of 8.6 for 2013, far below that of its oil industry counterparts as well as the FTSE 100. And with a dividend yield just below that of its black oil rivals, I believe that the company provides excellent value for money, and fully expect dividends to grow in lockstep with robust earnings growth in coming years

In my opinion, profits are on course to skyrocket over the long term as its ambitious drive to hike group production bears fruit. Royal Dutch Shell Plc (LON:RDSB) has earmarked between $120 billion and $130 billion in capex spend through to 2015, including the construction of the world’s deepest offshore oil and gas asset in the Gulf of Mexico. In total, the firm is building more than 30 major new assets under construction, spanning the globe. I think that the company is in a solid position to overcome current oil price volatility and punch strong growth further out, in turn driving dividend growth upwards.

A Closer Look at Royal Dutch Shell’s Dividend Potential originally appeared on Fool.com and is written by Royston Wild.

Motley Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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