Amidst the current market climate, investors often overlook one dividend stock that is primed to bring in consistent income. Despite the volatility of the stock market, a particular stock stands out in terms of its dividend yield and reliable returns.
A dividend, as defined by Investopedia, is a portion of a company’s profits that is distributed to shareholders. A dividend yield is a financial ratio that measures the amount of cash dividends paid out to shareholders relative to the market value per share of the stock.
Currently, one dividend stock is worth considering for long-term investors: Royal Dutch Shell plc (NYSE: RDS.B). Royal Dutch Shell is an oil and gas company based in the Netherlands and is the second-largest company in the world by revenue. As of this writing, Royal Dutch Shell has a dividend yield of 8.13%, compared to the S&P 500’s average of 1.90%.
The company has a strong track record of paying dividends, having increased them for the past 19 consecutive years. Royal Dutch Shell also has a dividend payout ratio of 49%, which indicates that it is able to support its dividends with its earnings and cash flow.
Investors should be aware that Royal Dutch Shell is exposed to the volatility of the oil and gas market. While the company has a long history of providing reliable dividends, any drastic changes in the price of oil could have a negative effect on the stock.
Despite this risk, Royal Dutch Shell is an attractive dividend stock for long-term investors looking for a steady income. The company has a strong track record of paying dividends and is well-positioned to continue to do so in the future. Investors should consider Royal Dutch Shell as an often-overlooked dividend stock to amass consistent income in their portfolio.