The UK Pound (Sterling) has come under pressure with the toxic debate on Brexit, remaining or staying in the European Union.

What we have seen in the past 4-5 months is that Sterling has depreciated against major currencies such as the dollar.

Here is a very simple example of the effect of this effective devaluation of Sterling.

Royal Dutch Shell
[http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133655]
[http://www.shareshop.hsbc.co.uk/shareshop/security.cgi?csi=133755]

Pays quarterly dividends to shareholders, and reports its financial figures in US Dollars.

Its dividend payment was $0.47 per share for the Q4 2015-16 Dividend.

On March 11th 2016, it announced the conversion of the $0.47 in UK £pounds. It’s 32.78p per share.

[http://ir1.euroinvestor.com/asp/ir/IRM_Shell/NewsRead.aspx?storyid=13328814&ishtml=1]

Its dividend payment was the same $0.47 per share for the Q1 2016-17 Dividend.

On June 13th 2016, it announced the conversion of the $0.47 in UK £pounds. It’s 32.98p per share.

[http://ir1.euroinvestor.com/asp/ir/IRM_Shell/NewsRead.aspx?storyid=13392917&ishtml=1]

One can immediately see the dividend has remained at $0.47 per share, but due to devaluation of Sterling has resulted in people receiving the dividend in UK£ have made an extra 0.2p per share

So as a simple example a shareholder with 1,000 shares in Royal Dutch Shell:=
in March 2016:-

1,000 x £0.3278 = £327.8 as a dividend

on June 2016

1,000 x £0.3298 = £329.8 as a dividend.

£2.00 more for doing NOTHING.