Thursday, December 2, 2021

Dividend Increase #82 of 2021 - Royal Bank of Canada (RY)



Yesterday, December 1st the Board of Directors of Royal Bank of Canada (RY) announced a quarterly dividend increase of from CA$ 1.08 to CA$ 1.20 per share that’s payable February 24, 2022 to holders of record January 26, 2022. This represents an 11.1% increase over the last quarterly dividend.


With current price CA$ 125.74 (yesterday's close), this raise brings their dividend yield to 3.82%.


Royal Bank of Canada is a member of Canadian Dividend All Star List with an 11 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 5.4, 7.2, 6.9 and 7.9 (Canadian Dividend All-Star List)



Since I own 120 shares of RY, this will increase my portfolio's projected annual net dividend income by $ 33.66.


Due to the pandemic, dividend increases were forbidden, so now that they are possible again, an increase was expected after two years. I was expecting an increase of around 7% per year, so the size of the increase was a slight disappointment.


This is the 13th dividend increase I received from RY since initiating a position August 2014. During this period, the quarterly dividend has risen very nicely from $0.71 to $1.20, or 69.01%


This increase raises my YOC to 6.34%.



Summary of 2021 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long RY


Thanks for stopping by!


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