Is it worth it to buy stocks of a company if the stock price is usually stable and no significant price growth can be expected within 5 years? Yes, the trends is for the price to grow, but it may take 5 years to go, for example, from $50 to $52.
My point is, I want to eventually reach a point where I make around $6,000 a year in dividends from a single company that offers 3,5-4% dividends.
The company in question is Shell. The company has diversified investments and is future-proof, stable and well established, so there is no risk of bankruptcy under normal market conditions.
The risk I'm taking, is that dividends could be cut, and there won't be any money coming to me because the stock price grows very slowly.
So, under normal market conditions, in the absence of global pandemics, wars and disruptive events, what could make Shell cut dividends? What usually makes a company to cut dividends under normal market conditions while there is good profitability?
Also, if you think Shell is not a good option, you can recommend me a better company. I'm in the EU, so better recommend me EU-based companies because the US has a witholding tax for foreign investors.
Thanks.