Why I would buy the Shell share price for my Stocks and Shares ISA right now
The Royal Dutch Shell (LSE: RDSB) share price took a hit at the end of October after the company warned global economic weakness and persistent lower energy prices could hit shareholder returns. Accordingly, the stock has underperformed the FTSE 100 by around 3% over the past month. However, I think this could be an excellent opportunity to snap up shares in this global oil giant and dividend champion at an attractive valuation. According to the company’s chief financial officer, Jessica Uhl, if energy prices remain at the level they were throughout the third quarter of 2019 for the next 12-months, Shell’s cash flow could drop by as much as $9bn, putting the group’s $25bn share repurchase programme in jeopardy. I think Shell is going to take a hit to profits in the mid-term as it devotes more capital to future growth but, in my opinion, this is the right course of action. If the company doesn’t invest now for future growth, it could find itself having to play catch up at a later date, which would undoubtedly mean much more pain for shareholders. So that’s why I would buy the Shell share price for my Stocks and Shares ISA right now.