Passive Income Opportunities Warning: Spend Some Money on Shell Stock

If there is one thing that sleeve (NYSE:SHEL) likes to do, it’s about returning capital to the company’s loyal shareholders. They do this through buybacks and dividends. Every passive income investor needs to take a look at Shell stock and take advantage of the undeniable buy-and-hold opportunity.

I sincerely hope that my message reaches as many U.S. investors as possible. Because Shell is based in the United Kingdom, many American stock traders have little to no portfolio exposure to this energy giant. So today is your lucky day because you will immediately find out the most important facts about Shell.

Slow and steady wins the race

Investors shouldn’t expect rapid growth from Shell since the company is already huge. Among global oil, gas and renewable energy companies, Shell is one of the largest and most well-known. It is a consistently profitable company that has been around for many years and has an extensive presence in the energy market.

Therefore, Shell’s growth should be viewed in context and investors should be realistic. In the first quarter of 2024, Shell reported adjusted EBITDA of $18.711 billion, up 14.5% compared to $16.335 billion in the previous quarter. During the same period, Shell’s adjusted profit improved 5.9% from $7.306 billion in the fourth quarter of 2023 to $7.734 billion in the first quarter of 2024.

It’s also encouraging to see Shell’s free cash flow increase from $6.9 billion to $9.8 billion and the company’s net debt from $43.5 billion to $40.5 billion. Dollar falls. From a financial perspective, the company is clearly moving in the right direction.

Shell shows love to its shareholders

This is where the passive income option comes into play. Shell knows how to deliver value to its shareholders, and one way it does this is by paying a generous dividend.

On this topic, Shell has just declared an interim quarterly dividend of around 69 cents per American depositary share, which could be considered common stock in the US. This is consistent with Shell’s track record of gradually increasing its quarterly dividend payouts over time.

If Shell’s expected annual dividend yield of 3.53% isn’t enough to impress you, then take a look. The company also announced a $3.5 billion share repurchase program. Shell explained in fancy terminology that the purpose was to reduce the circulating pool of shares.

Of course, a smaller pool of stocks should make each existing stock more valuable. It will not be a dramatic effect, but rather an increase in the long-term value of Shell shares. This is something respectful companies often do, and is therefore another good reason to take an equity position in Shell.

Shell Stock: Get rich, but do it slowly

If wealthy people have a get-rich-slow mindset, you can apply that mindset by investing in Shell. And when the dividends come in, you can reinvest those distributions and take advantage of the compound interest effect.

It is equally important that you invest in a company with solid fundamentals and consistent growth. Today is the perfect day to start building long-term wealth with a buy-and-hold position in Shell shares.