It is historically unusual for Royal Dutch Shell to yield over 6%. This is a company with a very long history of having a fair value that also corresponds to a dividend yield between 5% and 6%. Given how well the American stock market has performed over the past six years, it can be wise to take a look at any large company that appears to be offering a discount.
Royal Dutch Shell does $360 billion in sales per year. Hershey, which I covered yesterday, is worth $15 billion in its entirety. To get a feel for how large Royal Dutch Shell is, you could convert the amount of crude oil and natural gas that Royal Dutch Shell sells annually to the ability to buy the entire Hershey business 24x over. It is, without a doubt, massive.
Now, when people talk about being value investors, they often express a desire … Read the rest of this article!