Royal Dutch Shell: A Superior Play For The Energy Sector

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About: Royal Dutch Shell plc (RDS.A), RDS.B, Includes: BP, CVX, TOT, XOM
by: Ray Merola
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Ray Merola
Value, dividend investing, growth at reasonable price, contrarian
Summary

Investors seeking exposure to the energy sector, but looking to avoid the high volatility often associated with the space, may find Shell's stock to be a superior choice.

Shell has enormous global span and scope. It is truly a balanced, integrated Super Major energy company.

Royal Dutch Shell is not an overlay of the other Super Majors. Shell's management has taken high stakes in LNG, electric power production, and renewables.

The stock is undervalued and offers a safe, 6.3% dividend yield; 10-year Treasuries pay ~1.9 percent.

Diversification is a key to a well-managed portfolio. There are 11 S&P 500 sectors, one of which is Energy. Currently, Energy stocks are weighted a bit over 5% as a function of the total S&P