RYCEY - Rolls-Royce: A Difficult Decision
2024-04-23 15:45:20 ET
Summary
- Rolls-Royce Holdings plc is a wonderful business, but now trades at a high price.
- The company's businesses include established and profitable civil aerospace, defense, and power systems divisions, which fund investments in electric engines and modular nuclear reactors.
- As Rolls-Royce does not pay a dividend and looks expensive, I am writing out-of-the-money October puts for now.
British aircraft engine manufacturer Rolls-Royce Holdings Plc (RYCEF, RYCEY ) is a name I have long equated with "excellence" and the "jet set," though with the recent run-up in its share price, this is a stock I feel has now entered the category of "wonderful business at too high a price." I recently came across it again when scrolling through some of the largest stocks in the UK, which does not withhold taxes on dividends paid to foreign investors, and RYCEY is currently about 1.7% of both the FTSE 100 Index ( UKX ) and the iShares MSCI United Kingdom Index ( EWU ). ...
Rolls-Royce: A Difficult Decision