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Home / Dividends / Rolls-Royce

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Rolls-Royce

A dividend trading opportunity for you?

Rolls-Royce is due to pay a dividend of 4.6p per share/0.5% on Thurs 25 Oct

  • The chart shows the Rolls-Royce share price movements since April.
  • Rolls-Royce pays a 4.6p/0.5% dividend. Currently at 873p (at time of writing).
  • Shares -21% from 2018 highs; +9% from 2018 lows; +3.1% year-to date.
  • All CFD positions held over 4.30pm on Weds, 17 Oct will be paid a dividend at 7:15am on Thurs, 18 Oct.
  • Those using Rolls-Royce CFDs receive the dividend 30 days earlier than those using shares.
  • On the day the shares trade ex-dividend the share price tends to drop by the same amount.

Click to enlarge

Trading Rolls-Royce – An Example

Let’s say you like Rolls-Royce and would like to get the 4.6p/0.5% dividend. You decide to buy exposure to £10,000 worth of Rolls-Royce using a CFD, at the current price of 873p. To do this, you need £2,000.

Shares that go ex-dividend typically fall by the amount of the dividend on the ex-dividend date. Many shares then tend to recover over a period of time, helped by dividends being reinvested, creating a dividend recovery trade opportunity.

Assuming Rolls-Royce shares recover to their pre-dividend share price, your profit from the dividend would be £50, from your initial investment of £2,000.

Be aware that the share price could fall or rise, which could mean that you make an overall loss or increased profit on the position. For example, let’s assume that Rolls-Royce falls 2% at the same time it pays the dividend. You overall net loss on your £10,000 position would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Prepared by Michael van Dulken, Head of Research
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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