RDSA shres - euro dividend? in Stocks ISA ?

HOORA

If I buy Royal Dutch Shell A - do I get a dividend in Euros ? Or if I get a dividend in GBP instead, is it calculated from a Euro price and thereby if GBP falls against the Euro one still receives an equivalent ?

Is it possible to have RDS A shares in a UK ISA ?

How is one taxed as a Dutch/GB company, but the investor is a UK citizen residing in UK with a UK stocks ISA?

Im new to investing - I was saving for a house deposit and have 40k but have no need to buy in the next year to 18 months so am willing to invest for a yield and safety against inflation (gold). Probably willing to invest 4k in oil shares, 10k in gold and he rest in as high savings rates as i can get.


Many thanks

Masomnia

It's US Dollars I think, rather than Euros. The dividend is paid to you in GBP, so I think there is that currency fluctuation and yes I believe you can hold it within an ISA.

Since it's listed on the LSE you only have UK tax laws to worry about

If any of that's incorrect someone will correct me soon I'm sure!

HOORA

Why would a GB/Dutch company listed on LSE pay in dollars?

Anyone here got any RSD A shares?

ta.

Masomnia

I guess because oil's traded in dollars. I did have BP shares, and they paid out in USD.

HOORA

I have just found this -

17. Are the ‘A’ and ‘B’ shares fungible/interchangeable? No, the shares are not fungible/interchangeable. Although they are not interchangeable, they have identical rights. The only difference between the ‘A’ and ‘B’ shares is that holders of the ‘A’ shares will receive Dutch-source dividends which are paid in Euros and Holders of the ‘B’ shares are expected to receive UK-source dividends paid in Pounds Sterling.

from
http://www.unification.shell.com/shell_proposal/general/proposals/qa2/

so my question is can you put euro dividends into a stocks ISA ?

I think Il bump this into the ISA forum.

Masomnia

Fair enough. It's made me curious though, why not purchase 'B' shares then?

Lansdowne

Don't think the ISA forum is frequented by anyone not here.

Perhaps your question is really: will you be taxed as a UK taxpayer on Dutch dividends, if not is there any advantage in being in the ISA?

HOORA

No, to be honest Im more worried about the pound devaluing more so want a dividend in a different strong currency.

If an oil company earned profits and paid dividend in yen I would prefer that but cant find one.

mrposhman

Ok I assume you are going to have this paid into a euro account as if you don't then you'd be better off buying B shares.

I would check what savings you would make too, as B shares are cheaper.

I believe they report in dollars (hence the assumption above) but they do not pay out in dollars.

If I was you I would also check whether Shell is the right company for you, their yield is lower than some other oil giants like BP and it seems you only want to invest in them due to the euro.

Do you foresee the £ continuing to tumble against the euro?

If I was you I would do a bit more research as to what you return will be factoring in the yield of the dividend, the growth of the share (for example from their 3 year highs, Shell have fallen about 20% but BP have fallen about 28%), and any exchange rate fluctuations and that should provide you with your answer.

Don't limit yourself to just one stock due to paying in euros.

For the record I own both BP and Shell and prefer BP over Shell due to the yield and the growth potential, though it definately fluctuates more (due to larger volumes of trades).