Royal Dutch Shell Dividend Cut

I'll bet their stock price gets obliterated. Not saying it was the wrong move for the company, but a lot of investors are in this only for the dividend. Shows the hazards of chasing dividend yield.

Where’s the dude that swore up and down (in multiple threads) that shell would never cut their dividend?

This is going to spook the whole oil sector. Shell already down 10+%

BP down 4+%

CVX and XOM flat since they reaffirmed dividend payout.

That's incredible TBH. Even if you retest lows RDS at will survive the other side of this almost guaranteed so there's no need to panic.

that’s why others try their damnedest to maintain there’s. I agree it’s likely a buying opportunity for those looking to dabble.

They also cut out the bonuses for everyone in the company including the executives.

Interesting article out from Bloomberg on XOM. I see a lot of problems for Exxon going forward and the immense debt they carry along with their worse position relative to peers in the cost cycle puts them in an interesting position. I would bet most majors end up being forced to cut dividends before too long, RDS just happened to be the first.

I'm honestly not sure the majors are not just fundamentally flawed long term. They've lost out of the lowest cost assets mainly in the middle east to national oil companies instead spending on deepwater, oil sands, and some shale recently. Some have pivoted to gas like RDS and CVX to a lesser extent that may pay off eventually but look troubled in the near future. Not sure what the future holds for them, although they likely all survive this while the debt drillers in shale oil all perish and go away.