Dividend increase Royal Bank of Canada

Dividend increase Royal Bank of Canada

At the 23rd of August the board of Royal Bank of Canada (RY) decided to increase the quarterly dividend from CAD 0,87 to CAD 0,91 per quarter. This means an increase of CAD 0,16 per share per year which translates to a 4,6% increase. Compared to the same quarter a year ago the raise is even bigger since the company is used to raising the dividend twice a year. Compared to a year ago the raise is 12,3%! The dividend is paid on November the 24th 2017 to shareholders of record on October the 26th 2017. This is the 7th consecutive year in which RY increases the quarterly dividend.

 

The Pursuit

Since I have 9 shares this increase means that my yearly dividend for Royal Bank of Canada is now CAD 32,76. Up from CAD 31,32 or a CAD 1,44 increase in yearly dividends. After taxes I will receive $ 27,85 per year from the company.

This increase means RY currently yields 3,96% and my yield on cost rises to 4,64%.

 

Conclusion

Royal Bank of Canada is one of the companies in my portfolio that is just mind blowing! I own the stock for roughly a year and the company raises dividends twice a year. My Yield on Cost went up from 4,01% to 4,64% in just one and a half-year and I’m standing at 15% unrealized gains for the company. The value of the company is a bit down compared to half a year ago, so maybe a new buy signal? I would certainly like to add more to my Canadian banks at the right price!

But in the meantime I am collecting the dividends and I love it! 12,3% growth in a year is superb!

Do you own the Canadian banks? Would you like to own them? And if you do, how do you rate the past performance and future prospects? Discuss it here!

 

2 thoughts on “Dividend increase Royal Bank of Canada”

    1. I love the Canadian Banks. I’m looking to maybe add to TD at the moment which has a slightly better valuation and is just as nice a bank as RY. But I have to check if I like the current valuations. No doubt about the business itself for me personally. 🙂

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