I have made no secret of the fact that I am a big fan of the U.K.-Netherlands energy giant Royal Dutch Shell (RDS.B). The company was the subject of my first blog post ever at The Conservative Income Investor, and I came to like it even more after reading parts of the four-volume set “The History of Royal Dutch Shell.” Since 1911, the returns have been over 14% annualized, with about two thirds of the total returns come from collecting dividends and reinvesting them.
During the 1957 through 2006 period, Royal Dutch Shell delivered 12.5% annual returns (suggesting that the law of large numbers only had the effect of diminishing Royal Dutch Shell’s long-term returns by a percentage point and a half as it transitioned from large-cap to mega-cap status).
With most investment decisions, there is a trade-off between income and market-beating returns. If you want high income now, you … Read the rest of this article!