Aero-engine maker Rolls-Royce powers both military and civil aircraft and is a big supplier of power generating turbines to the marine and energy markets. The company, once famous for its prestige motor cars, sold the car business to Vickers in 1980, but retained the rights to the brand name. These rights were transferred to Germanys Volkswagen in 1998 and then passed on to BMW in 2003.

Rolls Royce Group dividends

Rolls-Royce Group has a fabulous track record of increasing it's dividends year on year and is projected to do so again by analysts over the coming two years. Rolls-Royce has an unusual dividend policy.

Unlike other listed companies, the Company makes payments to its shareholders in the form of C Shares.

C Shares are redeemable preference shares of 0.1p each in the capital ofRolls-RoyceHoldings plc (the Company). The Company will generally issue C Shares to its ordinary shareholders twice a year in lieu of a cash dividend.

Shareholders can opt for one of the following:

1. redeem all C shares for cash;
2. redeem the shares for cash and reinvest the proceeds in additional Ordinary Shares;
3. keep the C Shares.