Is Shell plc (SHEL) a Good Option for Dividend Income?

Shell plc (NYSE:SHEL) is included among the 15 Best Natural Gas and Oil Dividend Stock to Buy Now.

Thanks to its strong cash generation and robust balance sheet, Shell plc (NYSE:SHEL) announced a $3.5 billion share buyback program in August, marking the 15th consecutive quarter in which the energy giant has announced $3 billion or more in buybacks. The company also declared an interim dividend of $0.358 per share back in July. At the end of the second quarter of 2025, Shell’s 4-quarter rolling shareholder distributions were 46% of its CFFO – in line with its target range of 40% to 50% of CFFO through the cycle.

To make sure it can sustain such high cash flows and thus payouts even in a low-priced environment, Shell plc (NYSE:SHEL) remains focused on reducing costs and improving efficiency. As of the end of Q2 2025, the company has achieved $3.9 billion in structural cost reductions since 2022, putting it firmly on track for its target of $5 billion to $7 billion by the end of 2028.

Shell plc (NYSE:SHEL) is a global group of energy and petrochemical companies, employing 96,000 people across more than 70 countries.

While we acknowledge the potential of SHEL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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