Forget the Cash ISA! I’m buying the Shell share price in 2020

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Rupert Hargreaves | Monday, 6th January, 2020 | More on: RDSB “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Forget the Cash ISA! I’m buying the Shell share price in 2020center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves owns shares in Royal Dutch Shell. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Royal Dutch Shell (LSE: RDSB) share price really stands out as a blue-chip income stock.The company has paid a dividend every year since the second world war and as a result, is considered to be one of the most trustworthy dividend stocks in the FTSE 100.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, the group is currently experiencing a turbulent period. Volatile oil prices coupled with environmental concerns have weighed on the stock. The Shell share price currently trades on a forward price-to-earnings (P/E) ratio of just 11.3. This suggests that it offers a wide margin of safety at current levels.Overcome challengesShell’s future depends on the company’s ability to be able to overcome the challenges facing the business.Historically, the company has coped quite well with whatever the market has thrown at it. In 2014, when the price of oil collapsed, management acted without delay to slash costs and reposition the business for the new environment.The firm has continued to follow this approach since, which has helped its bottom line immensely. While the company’s results fell year-on-year for the three months to September, it still beat expectations.The group reported earnings of $4.8bn on a current cost of supply basis — the measure tracked most closely by analysts — whereas analysts were calling for income of $3.9bn. Better energy trading results helped Shell smash expectations.Management has said that the company requires oil prices to be above $66 a barrel in 2020 to meet its debt reduction targets and maintain its share repurchase activity. So far, the oil price has not reached this level, but rising geopolitical tensions could see it return to $66 soon.Actions by the world’s largest oil producers to try to reduce production to force prices higher have also had an impact on prices over the past few weeks. This suggests producers will be proactive in keeping prices up throughout the rest of 2020.Renewable energyShell is also making progress in its transition towards renewable energy. The firm has invested billions of dollars over the past 24 months, and management has earmarked billions more for the next few years. These actions imply that Shell isn’t going to stand still as the world changes.As such, it could be a good time for long-term investors to take advantage of the current value on offer with the Shell share price. Not only does the stock’s valuation offer a wide margin of safety, but the share price also supports a market-leading dividend yield of 6.2%, which is covered 1.2 times by earnings per share.Rising oil prices in 2020 could help turbocharge the company’s performance and put its debt reduction plans back on track. Therefore, now could be the right time to buy a slice of the business for the long run and pick up that 6.2% dividend yield while you wait. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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