10-19-2014, 10:48 PM
Someone just posted about Rolls Royce on Seeking Alpha: http://seekingalpha.com/article/2573505-...4-and-2015
I looked at them briefly when I was researching manufacturers of jet engines. They issue dividends in the form of equity, which you can choose to redeem as cash instead. It looks to me like they're paying "dividends" that don't come off the balance sheet, but are paid for through dilution, which is not normally part of the dividend growth thesis. I don't know if there is some meaning to the payout ratio, or if that's just a number automatically generated by financial databases. Ultimately I didn't find a compelling reason to add them to my short list.
I looked at them briefly when I was researching manufacturers of jet engines. They issue dividends in the form of equity, which you can choose to redeem as cash instead. It looks to me like they're paying "dividends" that don't come off the balance sheet, but are paid for through dilution, which is not normally part of the dividend growth thesis. I don't know if there is some meaning to the payout ratio, or if that's just a number automatically generated by financial databases. Ultimately I didn't find a compelling reason to add them to my short list.