The Shell Group recently announced an increase in its dividend and a share buyback programme following a significant increase in profits in the past year. If you would like to find out more about Royal Dutch Shell's dividend, share performance and history, you can find the answers to these questions here, as well as past and future dividend payment dates.
The last dividend that Shell paid to its shareholders was in 2021 for the financial year 2020. This dividend was €0.82 per share.
In addition, following the publication of its financial results for the year 2021, the Shell Group announced an increase in its next dividend to €1 per share with four payments in 2022.
The amount and dates of Shell's dividend payments are decided by the Board of Directors, who then present them to shareholders for a vote at the Annual General Meeting. Each dividend is based on the previous year's results.
Shell pays its dividend quarterly, i.e. four times a year, usually in May, August, November and February of the following year.
In 2021, the first dividend was detached on 04 May and paid on 14 May, the second was detached on 02 August and paid on 13 August, the third was detached on 03 November and paid on 13 November and the fourth was detached on 01 February and paid on 11 February.
The next dividend for Shell shares is the 2022 dividend on the 2021 financial year. The group recently announced that it will pay a dividend of €1 per share for this year, an increase of 4% on the 2021 dividend.
This dividend will be paid in four instalments, the first of which will be paid on 26 June at €0.25.
However, this 4% increase is not the first that the group has implemented in recent years.
Shell has been paying dividends to its shareholders continuously for several years now, since 2006. The price of this dividend has risen for several years in a row before falling recently. To better understand the evolution of this dividend, here is a detailed history of its amount and its variations over 10 years.
Looking at the latest available data on the history of Shell's dividend payment, we can see that the amount of the dividend paid by Shell has increased slightly and then decreased sharply in recent years. Over the last five years, the dividend has fallen by an average of 15.4% per annum and over the last ten years it has fallen by an average of 4.56% per annum.
To find out the dividend yield on Shell shares, it is necessary to divide the amount of the dividend by the share price. Thus, the amount alone does not allow us to know the profitability of this share.
By this calculation, the dividend that was paid by Shell in 2021 showed a yield of 3.53% and the dividend paid in 2022 will show a yield of 3.6%.
Royal Dutch Shell currently has a payout ratio of 126.53%, which shows that the company pays out more in dividends than it makes in profits.
Over the past 10 years, Shell Group has paid a dividend with an average yield of 3.25%, which is a little below the 2022 yield. Here is its history: