stock code: SHLPH
Pilipinas Shell Petroleum Corporation (SHLPH) operates as a downstream refining and marketing company. The Company focuses on turning crude oil into a range of refined products including gasoline and kerosene. It was incorporated and registered with the Securities and Exchange Commission on January 9, 1959 and was listed in the stocks exchange on Nov 03, 2016. Let’s now do our dividend review of Pilipinas Shell Petroleum Corporation (SHLPH)..
Stock Price Chart
Since its IPO or Initial Public Offering, the stock price has gone down considerably from 67 to now 29.95 pesos per share (No pun intended). Note that the chart below is an annual chart, this means that each bar represents a whole year. Since Shell listed only in 2016, we only have 4 complete bars (2016-2019) and one for 2020 which is only starting. A red bar indicates a decline in price and a green bar means a positive move in stock price. That’s a short intro to stock charts for those who are unfamiliar with it.
They Started giving out dividends in May of 2017. As seen on the table below, their DPS or dividends per share in the first 3 years has been erratic with an average of 3.26/share. But let’s just say they maintain the current 3 pesos dividend rate this year. At its current price, the dividend yield would be 10.02%. This is one of the highest yields in the PSE, SHLPH was also included in our Top dividend paying stocks for 2019.
SHLPH Dividend Table
.This is very attractive but since they don’t have that much history of giving dividends, and considering that the stock price is on a decline, we have to think multiple times if this is a worthy investment. We also have to consider the EPS or earnings per share and the PO or payout ratio.
Its earnings dropped from 6.43 in 2017 to 3.15 in 2018, but they still managed to increase their dividends which resulted in a high payout ratio. A payout ratio above 100% means that they’re giving more dividends than what they are earning. This could be due to multiple reasons and the money used for dividends may have come from sources other than their current earnings. But still, a high payout ratio is a red flag for the sustainability of dividends. Data in Figure 2 were taken from Col financial, I will update it once new data becomes available.
That concludes our dividend review of Pilipinas Shell (SHLPH) for 2020. I hope this helps you decide whether you’re going to invest in SHLPH or not. If you find this useful, please like and share it with your friends. Also, don’t hesitate to write your comments below!
Need Help? Read These Blogs Below!
- Dividend Basics – Everything a new investor should know
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Whether you’re a chartist or a fundamentalist, dividends should play an essential part of your investment strategy. There’s only two ways to earn from the stock market anyway, why not earn from both.– Chilliinvest