Maybe you’ve never considered buying Shell (NYSE:SHEL) stock because the company is based in the United Kingdom. You might be worried about the global energy industry’s fluctuations. Expand your horizons and invest in a buy-and-hold position in Shell today.
As we’ll discover, Shell is a company that respects its shareholders. If your aim is to collect passive income, investing in Shell can help you achieve that goal. So, let’s see what makes Shell stock a worthy holding for investors of all stripes.
SHEL Stock: Something for Practically Everyone
Even if Shell isn’t the best-known energy giant in the U.S., it’s still a premier oil and natural gas driller. If you’re bullish about electric vehicle infrastructure, Shell is involved in that market, as well.
On that note, Shell plans to increase the number of EV charging stations it operates from 54,000 currently to 200,000 by 2030.
The company assured in a recent report, “We are upgrading our retail network, with expanded electric vehicle charging and convenience offers, in response to changing customer needs.”
Whether your focus is traditional energy or EVs, Shell should appeal to your interests. If you’re looking for a company that’s growing its earnings, look no further than Shell.
Here’s the evidence. In 2023’s fourth quarter, Shell grew its adjusted earnings to $7.306 billion, versus $6.224 billion in the year-earlier quarter. During that same time frame, Shell’s adjusted EPS increased from 93 cents to $1.11.
Look to Shell for Buybacks and Dividends
So far, so good. What if you’re just looking for a good value, though? Shell’s got you covered, as the company’s GAAP trailing 12-month price-to-earnings (P/E) ratio is quite reasonable at 11.63x. Good luck trying to find a P/E ratio like that between the so-called “Magnificent Seven!”
Suddenly, investing “across the pond” in a UK-based business seems like a smart idea. Moreover, Shell really goes out of its way to return capital to its shareholders. Indeed, Shell commenced a share-repurchase program to the tune of $3.5 billion.
Shell announced a quarterly dividend payment of approximately 69 cents per American depositary share.
Shell’s forward annual dividend yield is a nearly 4%. Thus, SHEL stock is ideal for a long-term dividend-reinvestment strategy.
SHEL Stock: Open Your Eyes and Give It a Try
U.S.-based traders might not immediately think of Shell when they’re considering energy giants to invest in. Yet, Shell respects its shareholders, demonstrates earnings growth and isn’t excessively valued.
Opening your eyes and your mind to international investing can produce outsized returns. Conduct your due diligence on Shell, and you’ll see exactly what I’m talking about.
This is a premier energy giant that’s involved in both fossil fuels and EVs. Therefore, now’s the right time to buy SHEL stock with a plan to reinvest those healthy dividend distributions.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
