This Oil and Gas Stock is a Favorite Among Passive Investors

Shell plc (NYSE:SHEL) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now.

This Oil and Gas Stock is a Favorite Among Passive Investors

A gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.

A giant of the global oil and gas industry, Shell plc (NYSE:SHEL) distributed $5.5 billion among its shareholders in Q1 2025, including $3.3 billion in share repurchases and $2.2 billion in dividends. The company also announced a $3.5 billion share buyback program in May, which it expects to complete by the time of its Q2 2025 results announcement. This makes it the 14th consecutive quarter in which the crude oil producer has announced $3 billion or more in buybacks.

Shell plc (NYSE:SHEL) declared an interim dividend of $0.358 per share in May and currently boasts an annual dividend yield of 3.99%. Moreover, the company is able to maintain its shareholder payouts even in low-priced environments, given its low distribution breakevens – $40 Brent for dividends, and buybacks continuing at $50.

Artisan Partners stated the following regarding Shell plc (NYSE:SHEL) in its Q1 2025 investor letter:

“Shell is one of the world’s largest integrated oil and gas companies. The business has a durable portfolio of oil and gas resources, which includes a global leadership position in liquefied natural gas (LNG), an attractive and growing market.

The business has been materially transformed over the past two years by a new management team that understands value creation. CEO Wael Sawan and his team have adjusted the capital investment plan to be more focused on the core business and generating returns. Management has also used the company’s strong free cash flow (FCF) to add significant value for shareholders through capital allocation. Over the last three years, Shell has produced about $100 billion in FCF, and the management team has returned all of it through a combination of dividends, buybacks and debt reduction. The current market capitalization is about $200 billion, which means the company has returned over half the market cap to shareholders over the past three years…” (Click here to read the full text)

Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 103,000 people and with operations in more than 70 countries. The company is also the number one global lubricant supplier, as well as the top player in the rapidly expanding LNG sector.

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Disclosure: None.