Royal Dutch Shell shares

moneylover

why is there an A share and a B share please and in the UK is there one or the other that you would normally invest in, please?

JamesU

moneylover wrote: »

why is there an A share and a B share please and in the UK is there one or the other that you would normally invest in, please?

RDSB is UK listed on LSE, RDSA is listed on Dutch exchange (AEX). Always buy RDSB if you are UK resident. If you buy RDSA shares there will be 15% Dutch withholding tax on the dividend that you receive.

JamesU

StevieJ

Interestingly the A shares used to be about 60p more expensive than the B shares, now the B shares cost the most (by about 80p), is this driven by buybacks or something else?

Reaper

StevieJ wrote: »

Interestingly the A shares used to be about 60p more expensive than the B shares, now the B shares cost the most (by about 80p), is this driven by buybacks or something else?

While I don't know the answer it will not be buy backs. Shell has always said any buy backs will be for the Dutch shares.

cloud_dog

In fact the most recent buy-back specifically only targeted 'B' shares so as to increase the value / differential between the two. Doesn't seem to have worked though :cool:

sabretoothtigger

Is Shell cheap at 6 PE? BP I get why but Shell price appears higher but shows low pe

Glen_Clark

sabretoothtigger wrote: »

Is Shell cheap at 6 PE? BP I get why but Shell price appears higher but shows low pe

Interesting question. I guess the market expects a fall in the oil price. According to Reuters Shell PE is 6.89 but the industry is only 3.55 ?
http://www.reuters.com/finance/stocks/overview?symbol=RDSb.L

I am interested in them but a couple of other things concern me;
The pensions liability, as they were the last FTSE company to close the final salary scheme.
I would resent paying more than the Dutch for the same shares.

sabretoothtigger

4 PE would just be stupidly low. Cant be right, a company can buy every share with 4 years earnings is an extreme view

11 pe for sector is more like it and thats cheap 20 is what tech has in alot of case

moneylover

it seems quite a good time to buy as well below their year high. What would the dividend be roughly for B shares? Where would I find this info please?

StevieJ

Glen_Clark wrote: »

Interesting question. I guess the market expects a fall in the oil price. According to Reuters Shell PE is 6.89 but the industry is only 3.55 ?
http://www.reuters.com/finance/stocks/overview?symbol=RDSb.L

I am interested in them but a couple of other things concern me;
The pensions liability, as they were the last FTSE company to close the final salary scheme.
I would resent paying more than the Dutch for the same shares.

The pension is fully funded, even though Shell barely contributed a penny through 1990 - 2008, they have recently been significantly topping up but I guess this will be short term. BTW they have not closed the scheme yet so if you want a job with a good pension, get cracking BTW you can buy the A (Dutch) shares if you wish, you will just get a 15% deduction on dividends (I think).

StevieJ

moneylover wrote: »

it seems quite a good time to buy as well below their year high. What would the dividend be roughly for B shares? Where would I find this info please?

As of last night close, Shell had a dividend yield of 4.91% (per TD Waterhouse).