If you are one of those investors who have a risk Rolls-Royce (LSE: RR) Actions, when you celebrate for about 60 pence, this year you will receive about 13% of the original investment as dividends. This is a phenomenal complementary bonus since then 1100% of the recognition of stock prices.

Re -introduction of dividends

After a five-year break, Rolls-Royce restores dividends. This means a significant milestone in its phrases. The company announced a payment of 6 pens per share, in the amount of 500 million GBP, to give away in June 2025. This decision is made after the star capacity of 2024, with operational profits growing by 55% to 2.5 billion GBP, and free cash flows almost doubled 2.4 billion GBP.

In addition, Rolls-Royce has launched a redemption program for 1 billion GBP, returning a total of £ 1.5 billion for shareholders. CEO TUFAN ERGINBILGIC emphasized the company’s transformation into a high -performance, resistant business, powered by powerful results in all basic departments.

Looking to the future, the prospects of Rolls-Royce’s dividends are promising, and analysts forecast constant growth. The payment is expected to boost from 6 pence in 2025 to 7.8 pens in 2026 and 9.01p in 2027, reflecting annual increases of 30% and 16%, respectively. The company aims to disseminate 30% -40% of basic profits before tax as dividends, supported by a powerful boost in earnings.

It is expected that the profit before taxation will reach 2.86 billion GBP in 2025 and 3.18 billion GBP by 2027. However, the dividend profitability remains low at the level of below 1% at the current price, reflecting the last rally of shares. Despite this, the improvement of Rolls-Royce cash flows and profitability are at the basis of the long-term dividend potential.

Driving on volatility

President Trump’s tariffs will potentially create significant challenges for Rolls-Royce. As the main exporter of engines and power systems, the company is largely based on global supply chains and international trade.

Tariffs, including a fee for British export to the USA, boost production costs and disturb operations. Theoretically, the tariffs would make the British company less competitive on the American market.

It should be noted, however, that while 31% of the company’s sales are in the USA, 30% of its production capacity is also in the United States. This should alleviate part of the influence.

Lower line

I will start by saying that I would not buy Rolls-Royce shares today for dividends in the near future. However, I would emphasize that this is a business that is developing, and a moderate dividend can really add up over time. Look only, for example, Warren Buffetta and Coca-Cola – He now receives about 60% profitability based on the value of its first investments. This is something to think about.

In general, Rolls-Royce took advantage of powerful demand for long travel and defense contracts, with expected operational margins of 13-15% by 2027. Strategic concentration of Rolls-Royce on generating cash flows and positions that reduce costs also made it more resistant.

However, the risk is now raised. Trump’s tariffs threaten the stability of the supply chain, can inflate production costs and damage the demand for air travel. At the moment I am observing variability from afar. I do not expect to add to my farms right away, even from this slightly more attractive 25 -time earnings.