How to buy Rolls Royce shares (LON:RR) as defence stocks soar

Rolls Royce is the second most searched-for stock on the London Stock Exchange, which means tht a lot of people are interested in buying it.

This is not a surprise as the share price has done incredibly well recently. Not mainly because of their cars, but because of their defence contracts. In this guide, we’ll explain how to buy Rolls Royce shares and if they are a good investment.

You also have to consider the difference between the bid price (the price at which you sell shares) and the offer price (the price at which you buy shares). These fees vary depending on what sort of account you open, and with what broker.

Follow these three steps if you want to buy shares in Rolls Royce:

1. Open an investment account with a stock broker
2. Deposit funds from your bank account or debit card
3. Search for Roll Royce or it’s LSE code “RR”
4. Enter the number of shares you want to buy
5. Click buy and you will own shares in Rolls Royce and they will sit in your investment account

You can use the below chart and information about Rolls Royce’s profits to see if now is a good time for you to buy Rolls Royce shares.

Different ways to buy Rolls Royce shares

• GIA – a general investment account where tax is payable on Rolls Royce share price gains and dividends
• Investment ISA – a stocks and shares ISA where profits and income from Rolls Royce dividends are tax-free
• SIPP – a self-invested pension where you can buy Rolls Royce shares for your retirement. Profits are tax-free but you only get them at retirement age.
• ETFs – these are exchange-traded funds that contain Rolls Royce shares. These are a good way to buy Rolls Royce shares are part of a diverse portfolio.

There are currently 138 ETFs that contain Rolls Royce shares and here are the ETFs that have the largest concentration of RR shares in them:

1. iShares Global Aerospace & Defence UCITS ETF USD (Acc) 4.18%
2. iShares STOXX Europe 600 Industrial Goods & Services UCITS ETF (DE) 3.83%
3. iShares MSCI Europe Industrials Sector UCITS ETF EUR (Acc) 3.34%
4. SPDR MSCI Europe Industrials UCITS ETF 3.34%
5. First Trust United Kingdom Alpha DEX UCITS ETF Acc 2.72%

Best Brokers for Buying Rolls Royce Shares

You can compare the different costs associated with the different types of trading and investing accounts in our comparison tables below.

How much does it cost to buy Rolls Royce (LON:RR) shares?

Buying one LON:RR share costs 1,133p. However, as well as the 1,133p cost of buying the shares you will also have to pay stamp duty, commission when you buy and sell shares and custody fees for holding your shares on your account. You also have to consider the difference between the bid price (the price at which you sell shares) and the offer price (the price at which you buy shares). These fees vary depending on what sort of account you open, and with what broker.  You can compare the different costs associated with the different types of trading and investing accounts in our comparison tables below.

Is now a good time to buy Rolls Royce shares?

The current Rolls Royce (LON:RR) share price is 1,133p which is a change of -12.5 or -1.09% from the last closing price of 1,133 with 28,488,461 shares traded giving Rolls Royce a market capitalisation of £130,053,224,920. The most recent daily high has been 1,150 and daily low 1,123.5. The Rolls Royce share price 52 week high has been 1,154.5 and the 52 week low 489.1. Based on the most recent Rolls Royce share price opening of 1,133, the current Rolls Royce EPS (earnings per share) are 0.68 and the PE (price earnings ratio) is 16.59.