Dividend Increase Royal Bank of Canada

Dividend increase Royal Bank of Canada

At the 23rd of February the board of Royal Bank of Canada (RY) decided to increase the quarterly dividend from CAD 0,91 to CAD 0,94 per quarter. This means an increase of CAD 0,03 per share per year which translates to a 3,3% 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 8,0%! The dividend is paid on May the 24th 2018 to shareholders of record on April the 25th 2018. This is the 8th 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 33,84. Up from CAD 32,76 or a CAD 1,08 increase in yearly dividends. After taxes I will receive $ 28,76 per year from the company.

This increase means RY currently yields 3,76% and my yield on cost rises to 4,80%.



I really like Royal Bank of Canada. As we all know the rise in interest rates is a big positive for banks. Royal Bank is also profiting from this. Furthermore, the Canadian Banks are very succesful in the long run due to the conservative approach of business. This is the reason why my bank sector only has Canadian Banks in it.

This company rises its dividend twice a year. And the growth rate is quite good. My Yield on Cost went up from 4,01% to 4,80% in just two years. 8% growth rate in a year is less than the 12,3% of last year, but it is still great!

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!


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