Buy Royal Dutch Shell Shares and Forecast
Published: 22 March 2021 by Andrew
Oil prices this year have risen about 30% year-on-year, largely thanks to support from OPEC. This has sparked the interest of investors who are wondering if to buy Royal Dutch Shell shares is a good deal at the moment.
The increase in oil prices is certainly a good sign for companies in the sector but it is not the only one to take into consideration when deciding whether or not to invest in this oil giant.
For this reason, in our guide we have analyzed all the elements that come into play, starting with:
- The financial situation of Royal Dutch Shell
- the future prospect of the company
- The Analysts Forecast
This will give you a much more detailed overview and will be able to decide whether to buy Royal Dutch Shell shares more wisely.
The first move to do is to choose the Broker you will use to invest, better if you consider intermediaries without commissions such as eToro.
Below you will find the best online trading platforms on the market, choose freely, they are all reliable and convenient brokers:
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Real-time quotation and price of the Royal Dutch Shell Shares
Royal Dutch Shell Shares: a little history
Royal Dutch Shell plc / Koninklijke Nederlandse Shell NV is an oil company known simply as Shell.
It is a multinational that operates in the oil and gas sector globally.
Royal Dutch and Shell merged together in 1907 to compete with the giant Standard Oil, the ruler of the time.
Royal Dutch was founded in 1890 and Shell in 1897, so they were relatively new companies in the early 1900s.
Over the years, this new oil giant began to expand with very effective mergers and acquisitions and an agreement with British Petroleum, with which it continued in symbiosis until 1975.
Royal Dutch Shell is listed on both the London and Amsterdam stock exchanges but also has secondary listings on the New York Stock Exchange and other less representative stock exchanges.
The company currently operates in over 140 countries around the world, but its main market is the United States of America, where it operates with its subsidiary Shell Oil Company, based in Houston, Texas.
The main office is located in The Hague, in the Netherlands, where there is also the tax office.
How to buy Royal Dutch Shell Shares
To buy Royal Dutch Shell shares, both in the Euronext listing, both on the London Stock Exchange and on the NYSE, you need an intermediary.
You can choose between:
- Traditional banks
- CFD Brokers
In the first case you have to prepare to spend a lot of money, both to open the securities account, and for the famous stamp duty and trading fees.
In the second case, you will trade in a much cheaper and simpler way: No securities account, no stamp duty and no commissions.
CFD Brokers use Contracts for Difference and allow you to aim both up and down on a stock, a great advantage, especially for those who want to trade intraday.
Where to buy Royal Dutch Shell Shares
Choosing where to buy Royal Dutch Shell shares is a personal matter, brokers are very different from each other, but what matters is to consider only those with a regular license.
Forget illegal and irregular intermediaries and trust only those who are in possession of a CySEC or CONSOB authorization.
The best platforms to buy Royal Dutch Shell shares (in our opinion) are: eToro, ForexTB and Trade.com.
At the end of this guide you will find the links to register for free for the Demo accounts offered by these brokers, very useful for testing without risking money.
Now let’s discover together the distinctive features of these online brokers:
eToro is the most famous and used online trading broker in the world, thanks to a regular CONSOB license, it has won the trust of over 10 million members.
Its trading platform is one of the most intuitive in the industry and below we can see what the Royal Dutch Shell CFD listed in London looks like:
How do you buy Royal Dutch Shell shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the Royal Dutch Shell CFD and click on “Trade”
- Decide whether to buy or sell the shares and how much to bet in the operation
To intercept the needs of traders looking for automatic investment tools, eToro has created Copy Trading, a truly innovative system, here’s how it works:
You choose the traders you want to copy (among the best of eToro) and Copy Trading will replicate all the operations made by these investors on your account.
This way you can both get the same returns as these experienced traders, and learn their trading strategies.
To understand what results we are talking about we took a screenshot on the eToro platform, choosing some random traders:
Click here and choose which trader to copy
ForexTB has carved out a slice of very loyal traders who have appreciated its focus on training and investor needs.
The security of this broker is confirmed by a regular CySEC license, while one of the most important features of ForexTB is its Trading Course.
We are talking about an ebook that aims to be a reference point for learning the basics of online trading and the most profitable strategies.
The course is free, download it now from the link below:Click here and download the Trading Course for free
ForexTB offers its users two trading platforms, both free:
- Metatrader is a very professional platform, complete and full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
Here is what the Royal Dutch Shell CFD listed on Euronext Amsterdam looks like on the Web Platform:
To buy Royal Dutch Shell shares on ForexTB you have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select the Royal Dutch Shell CFD and click Buy (or Sell to short sell)
- Decide the amount to invest.
Trade.com offers both the popular MT4 and a gorgeous web platform to trade in stocks, indices, commodities, etc.
To buy Royal Dutch Shell shares on Trade.com you need to follow these instructions:
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the Royal Dutch Shell CFD and click “Buy” to buy or “Sell” to short sell
- Decide how much to invest in the operation.
One of the needs of trading newbies is to limit their initial expenses. For this reason Trade.com has made it possible for anyone to open an account with only 100 euros.
The CONSOB license is a guarantee of total reliability and its Trading Course is a real technical analysis manual that explains the rules to follow and the most effective strategies.
The course is free and you can download it from the link below:Download the Trading Course for free by clicking here
Royal Dutch Shell Business Model
Royal Dutch Shell plc is an energy and petrochemical company operating around the world.
Its business model is based on the segments:
- Integrated Gas
- Oil Products
It deals with exploring and extracting crude oil, natural gas and liquid gas, transporting and refining them.
It manages the upstream and midstream infrastructures necessary to supply gas to the market; also markets natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon emission rights; fuel for heavy vehicles and for ships.
Trades and refines crude oil and other fuels by refining them into: gasoline, diesel, fuel oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen and sulfur.
It also produces and sells petrochemicals for industrial use, chemicals such as ethylene, propylene and intermediate chemicals.
Relevant economic data from Royal Dutch Shell:
- Quotation: LSE (RDSA, RDSB), Euronext (RDSA), NYSE (RDS.A, RDS.B), PSE (SHLPH)
- Component of the FTSE 100, AEX
- ISIN: GB00B03MLX29
- Oil and gas sector
- Foundation: April 1907
- Shell founders: Marcus Samuel, Samuel Samuel
- Royal Dutch founders: Jean BA Kessler, Henri Deterding, Hugo Loudon
- Headquarters: Haagse Hout, The Hague, The Netherlands
- CEO: Ben van Beurden
- Revenue: $ 22.9 billion (2020)
- Net profit: $ 379.3 billion (2020)
- Employees: 86,000 (2021)
- Divisions: Shell Chemicals, Shell Gas & Power
Is it worth to buy Royal Dutch Shell Shares?
Royal Dutch Shell cut its dividends in 2020 due to the slump in oil demand due to the Covid-19 pandemic.
Furthermore, in recent years, the company has begun a path of renewal towards renewable energy, even if this transition will be quite long and complex.
Currently the energy company intends to invest from 10% to 15% in green sources, to gradually limit the emissions of harmful gases into the air following the use of fossil fuels.
The long-term graph below shows a growth trend that since 2016 has led to historical highs of 2018, and then moves sideways until the drawdown of March 2020, with the collapse of the market.
Royal Dutch Shell Competitors
Royal Dutch Shell’s major international competitors are the largest oil and gas companies operating all over the world, as well as very important chemical companies, among which we mention:
- Saudi Aramco
- Exxon Mobil
Royal Dutch Shell Dividend
Royal Dutch Shell pays an annual dividend of 0.95 GBX per share, with a dividend yield of 0.06%.
Royal Dutch Shell pays -0.34% of its earnings as a dividend.
Royal Dutch Shell Shares Forecast
The rise in oil prices that has characterized this early 2021 is a shot in the arm for the coffers of Royal Dutch Shell, which must repay the accumulated debts to resist the decline in oil demand.
In addition, the promise to raise dividends by 4% will be much easier to keep if the oil business is thriving, with extra money earmarked for share repurchases.
All in all, if oil prices remain high, society and investors will benefit. At the same time, the cost of the slow transition to clean energy will also be much easier to bear.
Below we have reported some valuations issued by the major international investment banks, which have recently ruled on the Royal Dutch Shell shares:
- Jefferies Financial Group has issued a “buy” rating on the stock.
- Redburn Partners went from a “neutral” rating to a “buy” rating towards Royal Dutch Shell.
- Scotiabank upgraded Royal Dutch Shell shares from an “industry underperformance” rating to an “industry yield” rating
Mizuho has set a “buy” rating on the stock.
- Sanford C. Bernstein upgraded Royal Dutch Shell shares from a “market performance” rating to an “outperformance” rating.
- MKM Partners has set a “buy” rating on the stock.
- Wells Fargo & Company upgraded Royal Dutch Shell shares from an “equal weight” rating to an “overweight” rating
Target Price of Royal Dutch Shell Shares
By examining the valuations of 8 international analysts who have made long-term forecasts on Royal Dutch Shell over the past few months, we have come to an average price target.
Their twelve-month average target price is GBX 1,515 for listing on the London Stock Exchange.
The high price target for RDSA is GBX 1,750 and the low price target is GBX 1,180.
There are currently 1 sales valuation, 2 pending valuations and 5 purchase valuations for the stock, which confirm the propensity to buy of most market analysts.
The increase in demand for oil recorded in 2021 has given new impetus to oil companies and has rekindled the hopes of investors in this sector.
Buying Royal Dutch Shell shares is considered a good investment by market analysts, although beware of short-term swings which could make the uptrend quite bumpy.
Whatever strategy you have in mind, we recommend that you first test it in Demo, using these accounts offered by the CFD Brokers that we have proposed, they are identical to the real ones but you use virtual money and you do not take risks.
When you feel ready, switching to real investments will be quick and easy.
Here are the links to register for free to the Demo accounts offered by the main CFD Brokers:
- Sign in to the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Register on Trade.com and try the Demo account by clicking here
Royal Dutch Shell currently pays an annual dividend of 0.95 GBX per share.
International analysts are almost all bullish on the stock, especially from a long-term perspective.
The twelve-month average target price is GBX 1.515.
With CFD brokers like eToro, which allow you to trade on the stock safely and without paying commissions.