3/15/2023 0 Comments Jet runway cafeThe Motley Fool, Fool, and the Fool logo are registered trademarks of The Motley Fool Holdings Inc.American Airlines and American Eagle are in business to provide safe, dependable and friendly air transportation to our customers, along with numerous related services. Registered Office: 5 New Street Square, London EC4A 3TW. We publish information, opinion and commentary about consumer credit products, loans, mortgages, insurance, savings and investment products and services, including those of our affiliate partners. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the Financial Conduct Authority (FCA) (FRN: 422737). Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns for sterling-based investors.įool and The Motley Fool are both trading names of The Motley Fool Ltd. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin. They may have other tax implications, and may not provide the same, or any, regulatory protection. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes and different accounting and reporting standards. You should not invest any money you cannot afford to lose, and you should not rely on any dividend income to meet your living expenses. The value of stocks, shares and any dividend income may fall as well as rise and is not guaranteed, so you may get back less than you invested. No liability is accepted by the author, The Motley Fool Ltd or Richdale Brokers and Financial Services Ltd for any loss or detriment experienced by any individual from any decision, whether consequent to, or in any way related to the content provided by The Motley Fool Ltd the provision of which is an unregulated activity. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser. No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. As it is, Rolls is on my candidates list with a long-term view. ![]() If there were no other shares that I found more attractive, I’d buy for sure. Or perhaps less risky.Īnd that’s where I stand on Rolls-Royce shares today. The main thing that might still stop me buying is if there’s another stock out there that I think is even better value. Worth moreĪs long as I think the total value of an investment in 10 years (based on share prices and dividends) would be significantly higher than today’s valuation, it goes on my buy list. If we buy shares today at low prices, we’ll lock in better effective yields than if we wait until the dividends are rising again and share prices are inevitably higher. Shares I might buy along the way would be worth their dividend yields based on my purchase price. And we could then add any long-term dividend cash to their value. But I could see Rolls-Royce shares doubling in value. I don’t expect a 10-bagger from Rolls-Royce in the next decade. But if this level of business can be achieved in, say, five years, we might then have five more years of steady growth. That would be attractive, though not too exciting. Dividend returnĪ return to 2019 dividends would provide a 6% divided yield. That would suggest only a modest share price increase to get it back around the FTSE 100 average. If the company can ever get back to 2019 earnings, the current share price would mean a price-to-earnings ( P/E) ratio of around 12. So what might Rolls-Royce shares be worth? That is, providing my long-term view of the company’s prospects is still positive. But I reckon the obvious way to make up for that is to buy more. Well, if it falls, it would mean I could have bought them cheaper if I’d waited a year. I mean, if I buy Rolls-Royce shares today with the intention of holding for at least 10 years, why should I care where the share price goes next year? If I don’t intend to sell next year, it simply doesn’t matter. ![]() On that basis, I don’t care much about what happens to my share prices in the short term. Ultimately, for me, the worth of a share is measured by the value of the dividend stream I’m going to get from it in the coming years and decades.
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