Shell plc (SHEL): Among the Best International Dividend Stocks to Buy Now

Shell plc (SHEL)

As an investor, you're always on the lookout for the best opportunities to grow your wealth. One of the most reliable ways to do this is by investing in dividend stocks. These companies distribute a portion of their profits to shareholders, providing a steady income stream. One such company that stands out is Shell plc (SHEL), a London-based energy titan that offers an attractive combination of dividend yield, growth, and stability.

Shell plc (SHEL) Dividend Yield History

Shell plc (SHEL) boasts an impressive dividend yield of 4.25% as of February 11, 2025. This is higher than the average yield of similar companies in the energy sector, making it an attractive option for income-oriented investors. Additionally, Shell plc (SHEL) has a history of increasing its dividends, with the most recent increase of 4% announced on January 30, 2025. This consistency in dividend growth is a positive sign for long-term investors.

Shell plc (SHEL) Acquisition of RISEC Holdings

One of the primary reasons behind Shell plc's strong financial performance in 2024, despite lower earnings in the fourth quarter, was its acquisition of RISEC Holdings. This deal added a 609 MW gas power plant in Rhode Island to Shell's portfolio, helping to secure long-term energy supply in the ISO New England market. This acquisition is particularly beneficial as demand is expected to rise with the push for decarbonization. The addition of this power plant to Shell's portfolio helps to diversify its energy sources and ensures a steady supply of electricity to meet increasing demand. This acquisition aligns with Shell's strategy to invest in renewable and low-carbon energy sources, further solidifying its position in the energy market.

Shell plc (SHEL) Financial Performance in 2024

Shell plc's strong financial performance in 2024 can also be attributed to its high free cash flow, dividend increase and share buyback program, and strong hedge fund support. Despite lower earnings in the fourth quarter, Shell plc generated $40 billion in free cash flow in 2024, surpassing 2023 levels even in a weaker price environment. This indicates the company's ability to generate substantial cash from its operations, which is a key driver of its financial performance. Additionally, Shell plc announced a 4% dividend increase and a $3.5 billion share buyback program in 2024, marking the 13th straight quarter of at least $3 billion in buybacks. This demonstrates the company's commitment to returning capital to shareholders and boosting shareholder value. In Q3 2024, 48 hedge funds were bullish on Shell plc, compared to 49 in the last quarter, indicating that many professional investors have confidence in the company's financial prospects.

Shell plc (SHEL) Hedge Fund Support

Shell plc is a popular energy play among Wall Street funds, with 48 hedge funds bullish on the company in Q3 2024. This indicates that professional investors have confidence in the company's prospects. Shell plc's large market capitalization of $2031.87 billion, making it a liquid and stable investment option. Its shares are also widely traded, ensuring easy entry and exit for investors.

In conclusion, Shell plc (SHEL) is an attractive choice for investors seeking international dividend stocks with strong fundamentals and growth potential. Its high dividend yield, consistent dividend growth, strong financial performance, acquisition of RISEC Holdings, and hedge fund support make it a compelling option for income-oriented investors. As an investor, it's essential to stay informed about the latest developments in the market and make well-informed decisions based on reliable data. By investing in Shell plc (SHEL), you can benefit from its strong dividend performance and growth prospects.