Hi all, just looking to invest in a good solid oil company and am not clear about the difference in the A and B shares. Today for instance the A shares are currently 1801 down 1.69%However as comparison B shares are currently 1883 down 0.35%A shares show a divi of 3.6%, there is no info on the B shares.I see the message board is under B shares and i do know about the merger. So which share to buy, and what is the difference above and beyond the A shares being more unloved today?
I am not too sure about the A and B shares to be perfectly honest as I am relatively new to Shell. I am currently buying Shell A shares on the AEX, all I can say is that Royal Dutch Shell A shares on on the AEX have traded around 7.5m so far today whereas the B shares have only sold 11,181 so for liquidity reasons I would stick with the A's I guess some others could give better reasosns than this.
If you are buying Shell please remember that the shares become ex-dividend on February 8, 2006 so expect a small drop on Friday, I am looking at buying in sub 26 euro this week.
If you are buying Shell please remember that the shares become ex-dividend on February 8, 2006 so expect a small drop on Friday, I am looking at buying in sub 26 euro this week. 8th Feb is TODAY, Wednesday, not Friday. And the drop just happened!Put simply, A shares are for Holland - subject to Dutch withholding tax - and B for Britain - paid from "UK Sourced Income"hgv
What is the difference between the two classes of shares in Royal Dutch Shell: RDSA & RDSB?RDSA and RDSB are essentially identical shares except for a difference in the way that dividends are paid, which causes a tax difference and as a consequence means it would be strange for a UK person to want to buy RDSA instead of RDSB.Briefly:The RDSA shares are intended to equate to the old Dutch company shares of Shell Group whereas RDSB are intended to equate to the old UK company shares of Shell Group. The new company is "Royal Dutch Shell plc" which is a UK company that is tax resident in the NetherlandsDutch tax law imposes a dividend withholding tax of 25% which means that 25% of the cash dividend that the company pays is physically withheld at source by the company and instead paid to the Dutch tax inspector. The UK tax system does not have a dividend withholding tax system whatsoever, our tax credit system is purely a notional tax credit and does not reflect an actual physical withholding of tax.To "streamline international investment", Shell came up with a clever wheeze called a "Dividend Access Mechanism", which works as follows:* RDSA shares (the equivalent of the old Dutch shares) will continue to suffer dividend withholding tax at 25%.* RDSB though (the equivalent of the old UK shares) will not suffer any withholding tax PROVIDED that the company Royal Dutch Shell plc can demonstrate to the Dutch tax inspector that the dividends being paid on the RDSB shares are sourced directly from UK income.Hence the RDSB shares are slightly better from a UK perspective since there should be no withholding tax on them, this is reflected in the current pricing.A couple of other points to note:1. Shell have stated that they will favour buying back RDSA over RDSB, this may make the demand for RDSA slightly stronger.2. There are differences in the default currency used to pay dividends. With RDSB the assumption is that you'll want the Euro div paid in sterling, whereas with RDSA the assumption is that you'll want the Euro dividend paid in Euros. You can make elections in both cases for a dividend in the alternative currency.RegardsJakNife
Very succinct Jaknif, have a rec.Eon
Very succinct Jaknif, have a rec.Eon I disagree!My answer was "succinct"Jak's is "comprehensive"-as everhgv
how much is the divi?
Dunno. Why don't you visit http://investor.shell.com and find out?
Dunno. Why don't you visit http://investor.shell.com and find out? There is no need to be an arse about it, here you go Jimmy129 this link tells you more about the Divi, http://boards.fool.co.uk/Message.asp?mid=9803598
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |