Friday, 10 April 2015

New Purchase - Royal Dutch Shell

On April 10, I initiated a position in Royal Dutch Shell (RDS.b).

Number of shares purchased
50
Price per share
$60.45
Commission
$9.95
Total cost per share
$60.65
Total cost
$3,032.95
Annual dividend per share
$3.76
Initial dividend yield
6.20%
Increase in forward 12-month dividends
$188.00

My dividend income is now $8,282.51 per year.

3 comments:

  1. ADY,

    I really like the purchase here. I plan on buying more shares next Tuesday. I actually sold some call options on BP at $48 recently. Right now I like the idea of buying Shell and possibly selling of some shares of BP. It will be interesting to see how these two trade in the coming months.

    MDP

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  2. In the short term, it's difficult to know where all this is going. But in the long term, I believe oil is going up. I came very close to selling 100 BP shares (bought at $35.25 in Dec 2014) to buy RDS, reason being the CAD to USD exchange rate (the above transaction cost me over $3,800 CAD). In the end, I swallowed the 1.26 exchange rate because BP is still very cheap. If BP shots up to around $48, I might just sell these shares and look for an undervalued stock.

    Last week, I placed a limit order for a put option on RDS, but it didn't go through (Nov 2015 $60 @ 4.40). Mgts long term plan and vision...debt reduction, dividend, share buyback...fits with me and, should the share price remain low, I'm prepared to either sell a put or buy more shares...might even to both.

    In todays world, it's all about the next quarter, which gives real investors the opportunity to buy cheap!

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