“RE: The days of 5% dividend yields are limited:

“Do you mean the dividends are not secure or that the prices are on sale for a limited time only?”

David Fuller's view

Good question.  I was talking about Royal Dutch Shell, of course, and it largely depends on the price of crude oil.  If Brent rallies above $70 towards the end of the year, and mostly holds that gain through at least 2016 & 2017, then Shell should have sufficient cash flow to pay the current yield. However, if Brent were to stay below $60 through 2017, I think we would almost certainly see a dividend reduction. 

See also Wednesday's comments on this subject.