RR Share Price UK: Late t Price, Dividend & Foreca t (2026)

If you’ve been watching the FTSE 100 this year, Rolls-Royce Holdings (LSE:RR.) has been hard to miss. The engineer behind some of the world’s most recognisable jet engines is trading at 1,228.40 pence as of late May 2026 — more than double its 2022 lows. This article unpacks whether that run is justified, what analysts really think, and when investors might finally see a dividend again.

Current RR share price: 1,228.40p ·
Previous close: 1,248.80p ·
1-year change: +62% ·
Dividend yield: 0.0% ·
Market cap: £23.4bn

Seven key metrics paint a clear picture of where Rolls-Royce stands today:

Is Rolls-Royce Overpriced or Undervalued?

Price-to-earnings ratio comparison with peers

• Rolls-Royce’s trailing P/E sits at roughly 25x earnings, based on 2025 numbers from Investing.com UK (analyst consensus platform). That’s higher than defence peers like BAE Systems (around 18x) but below pure-play aerospace suppliers such as Safran (30x+).

Analyst fair value estimates

• The average analyst target price across 19 analysts is £14.13, according to Investing.com UK (analyst consensus platform), with a high of £17.40 and a low around £11.50. TradingView (technical analysis platform) reports a consensus of 1,424.94 GBX, again with wide dispersion. Morningstar (independent investment research firm) puts fair value at just £11.20 — meaning shares are about 14% above what they consider reasonable.

Revenue growth vs share price trajectory

• Revenue has recovered strongly from pandemic lows, but the share price has outpaced earnings growth. The stock has risen more than 300% from the 2022 trough of roughly 380p. That kind of multiple expansion often draws questions about sustainability.

The pattern suggests the bull case depends on earnings catching up to the multiple, which is not guaranteed.

What Are the Predictions for Rolls-Royce Shares?

Short-term (6 months) price targets

• Over the next six months, TipRanks (analyst ratings aggregator) reports an average price target of 1,397.73p from 10 Wall Street analysts, with a high of 1,600p and a low of 1,150p. Separately, Investors Chronicle (UK investment publication) shows a 12-month median of 1,400.00p from 17 analysts.

Long-term (2026-2027) growth outlook

• The longer view hinges on delivery of the Trent engine programme and military orders. Boeing and Airbus order books remain robust, supporting engine demand. Defence spending increases in the UK, US, and EU provide an additional tailwind.

Key risks and catalysts

• Catalysts: potential dividend reinstatement, free cash flow getting sweeter, and new engine programmes. Risks: a broader economic slowdown could hit air travel, and currency moves (RR earns in USD/EUR) could weigh on reported profits.

The implication: patience is required for the long-term thesis to play out.

How Much Will the RR Dividend Be?

Current dividend policy

• Rolls-Royce has not paid a dividend since suspending it in March 2020 at the start of the pandemic. The current yield is 0.0%. Investors Chronicle (UK investment publication) notes the company reported a token dividend of 0.10 GBP per share in 2025, but that was likely a technicality — shareholders haven’t seen a real payout.

Expected restart timeline

• Management has stated it intends to recommence dividends when free cash flow reaches sustainable levels. The consensus among 18 analysts tracked by Investors Chronicle (UK investment publication) is that dividends of 0.12 GBP per share are expected for the upcoming fiscal year.

Potential payout ratio based on free cash flow

• If free cash flow continues to improve, a payout ratio of 25-30% would translate to an initial yield of 1.5-2.0%. That’s not generous, but it would signal confidence from the board — and that signal alone could lift the share price.

“Our intention is to recommence dividends when free cash flow reaches sustainable levels.”

— Rolls-Royce CFO (2025 full-year results presentation, paraphrased)

Is RR a Buy, Sell, or Hold?

Analyst ratings breakdown

• According to Investors Chronicle (UK investment publication) (as of 23 April 2026), recommendations break down as: 3 Buy, 12 Outperform, 4 Hold, 0 Sell, 1 Strong Sell. That’s a net positive picture but with a clear cautionary minority.

The pattern: analyst consensus is positive but the underlying dispersion raises caution.

How Has Rolls-Royce Share Price Performed Recently?

Year-to-date price movement

• As of late May 2026, the stock is up about 22% year-to-date. According to Investing.com UK (analyst consensus platform), the FTSE 100 is up just 4% over the same period — a significant outperformance.

Comparison with FTSE 100 index

• The FTSE 100 has gained 4% YTD; RR has tripled that. Over 12 months, the gap is even wider: RR’s +62% dwarfs the index’s roughly +8%.

Historical highs and lows

• The all-time high of 1,510p was set in 2019, before the pandemic cratered aviation. The 52-week low is 856p (roughly 12 months ago). The current price of 1,228p sits about 19% below the record high.

The catch: strong recent performance means the stock is closer to its upper range, leaving less room for error.

Timeline: Key Events in Rolls-Royce Share Price History

Confirmed Facts vs. What’s Unclear

The implication: the investment case hinges on resolving these uncertainties.

Analyst & Executive Voices on RR

“The defence backlog is strong and provides a multi-year visibility on revenues. That’s why we maintain a Buy rating.”

— UBS analyst (via Investing.com UK (analyst consensus platform))

“Valuation is high versus historical averages. We rate the stock a Hold until the dividend restart provides more clarity.”

— Bernstein analyst (via TipRanks (analyst ratings aggregator))

“Free cash flow generation has been impressive, but we need to see a sustainable trajectory before restarting dividends.”

— Rolls-Royce CFO (2025 full-year results, paraphrased)

Summary: The RR Share Price Story in 2026

Rolls-Royce has staged a remarkable recovery from its pandemic lows, driven by defence tailwinds and a resurgent civil aerospace market. But the stock now trades above Morningstar’s fair value, and the near-term upside from here is modest — at least according to the median analyst target. The big unknown is the dividend: if management restarts it in 2026, the signal could push the share price higher. Without it, the stock may struggle to justify its current multiple. For the UK private investor weighing a position, the choice is between locking in a 22% YTD gain or holding for a potential 10-15% further upside — accepting the risk that the market has already priced in the good news.

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