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Shell (RYDAF) is an integrated oil and gas company that explores for, produces, and refines oil around the world.

In 2021, it produced 1.7 million barrels of liquids and 8.7 billion cubic feet of natural gas per day. At year-end 2021, reserves stood at 9.2 billion barrels of oil equivalent, 50% of which consisted of liquids.

Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.8 mmb/d located in the Americas, Asia, Africa, and Europe.

Shell also sells 15 mtpa of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.

The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022.

Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

Three key data points gauge

Shell PLC or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

RYDAF Price

Over the past year, Shell’s share price rose 15.2% from $29.97 to $34.53 as of Thursday’s market close.

If Shell shares trade in the range of $25.00 to $50.00 this next year, its recent $34.53 share price might rise to $39.00 by next year. Of course, Shell’s price could drop about the same $4.47 estimated amount, or more.

My annual upside estimate of $4.47 however, is within the range of the company’s average annual price gains over the past four years.

RYDAF Dividend

Shell PLC has paid variable quarterly dividends since March 2009. Shell’s most recent Q dividend of $0.34 was declared February 1 for shareholders of record February 15th and payout was made March 25th.

The forward looking $1.38 annual dividend yields 3.98% at Thursday’s $34.53 share price.

RYDAF Returns

To put it all together, add the Shell estimated annual dividend of $1.38 to the estimated price upside of $4.47 to find a $5.85 estimated gross gain for the coming year.

At Thursday’s $34.53 share price, a little over $1000 would buy 29 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.345 per share.

Subtracting that likely $0.345 brokerage cost from the $5.85 gross gain reveals a net gain of $5.505 X 29 shares = $159.65 for a 16% estimated net gain on the year.

You might choose to pounce on Shell PLC. It is a 116 year-old dividend paying London-based integrated oil and chemical company.  Furthermore, the estimated $39.80 annual dividend income from $1k invested is $5.27 greater than Shell’s recent $34.53 single share price.

The exact track of Shell PLC’s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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