Shell's First Dividend Cut Since WW2

First dividend cut since 1945 sees payout slashed 66%, but experts believe the move is a sensible one in the light of the oil price plunge

James Gard 30 April, 2020 | 11:50AM

Shell

Royal Dutch Shell (RDSB), one of the biggest income payers on the FTSE 100, has cut its dividend for the first time since the Second World War in response to the plunging oil price and coronavirus crisis.

The firm's first-quarter results reveal a staggering 93% decline in pre-tax profit. Chairman Chad Holliday said: “Given the risk of a prolonged period of economic uncertainty, weaker commodity prices, higher volatility and uncertain demand outlook, the Board believes that maintaining the current level of shareholder distributions is not prudent.”

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James Gard  is content editor for Morningstar.co.uk

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