Tuesday, May 30, 2023

Dividend Increase - Royal Bank of Canada (RY)


Thursday, May 25th the Board of Directors of Royal Bank of Canada (RY) announced a quarterly dividend increase of from C$1.32 to C$1.35 per share that’s payable August 24, 2023 to holders of record July 26, 2023. This represents a 2.27% increase over the last quarterly dividend. It should be noted that this is the second increase in the last 12 months. In December 2022, RY increased quarterly dividend from C$1.28 to C$1.32 or 3.69%, bringing the annual increase to 5.47%.

With current price C$123.49 (yesterday's close), this raise brings their dividend yield to 4.37%.

Royal Bank of Canada is a member of Canadian Dividend All Star List with a 12 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 14.8, 6.8, 7.3 and 8.1 (Canadian Dividend All-Star List)

Since I own 120 shares of RY, this will increase my portfolio's projected annual net dividend income by $7.87.

Royal Bank of Canada last raised its dividend in December 2022, so it looks like the pre-pandemic era is back and the dividend will probably rise again twice a year. If that happens, I will be pleased with this increase.

This is the 16th 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 $1.35, or 90.1%

This increase raises my YOC to 7.13%.

Summary of 2023 Dividend Increases / Cuts

Click here to see my portfolio holdings.

You can follow the development of my dividends here.

Full Disclosure: Long RY

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