Just Four Days Till Shell plc (LON:SHEL) Will Be Trading Ex-Dividend: What Investors Need to Know

As the clock ticks down to the ex-dividend date for Shell plc (LON:SHEL) on February 14, 2025, investors are reminded of the importance of understanding the implications of this event. The ex-dividend date marks the day when the company's shares will trade without the value of the upcoming dividend payment. Here's what investors need to know about the upcoming ex-dividend date for Shell plc.



1. Impact on Share Price: On the ex-dividend date, the share price of Shell plc typically drops by the amount of the dividend paid. This is because the dividend is paid out of the company's earnings, and the stock price reflects the company's earnings. So, investors who buy the stock on or after the ex-dividend date will receive a lower price per share, but will still be entitled to the dividend.
2. Potential Sell-off: Some investors may sell the stock before the ex-dividend date to avoid receiving the dividend, which can lead to a temporary sell-off in the stock's price. However, this sell-off is often short-lived, as the stock price typically recovers once the dividend is paid.
3. Dividend Yield: The dividend yield for Shell plc is 4.10%, which is higher than the average dividend yield for Oils/Energy companies that issue dividends. This can attract income-oriented investors who are looking for a higher yield.
4. Dividend Payout Ratio: Shell's dividend payout ratio of 56.58% is at a healthy, sustainable level, below 75% of its earnings. This indicates that the company is paying out a reasonable portion of its profits to shareholders while still maintaining a strong financial position.
5. Dividend History: Shell has a history of paying dividends consistently, which can instill confidence in investors that the company will continue to do so in the future.

In conclusion, the upcoming ex-dividend date for Shell plc on February 14, 2025, can have both positive and negative impacts on the company's stock price and investor sentiment. While the share price may drop on the ex-dividend date due to the dividend payout, the stock's dividend yield and payout ratio remain attractive to income-oriented investors. As always, it's essential for investors to do their own research and consider their individual investment goals and risk tolerance when making investment decisions.