Tuesday, December 5, 2023

Dividend Increase - Royal Bank of Canada (RY)

 



Thursday, November 30th the Board of Directors of Royal Bank of Canada (RY) announced a quarterly dividend increase of from C$1.35 to C$1.38 per share that’s payable February 23, 2024 to holders of record January 25, 2024. This represents a 2.22% increase over the last quarterly dividend. It should be noted that this is the second increase in the last 12 months. In May 2023, RY increased quarterly dividend from C$1.32 to C$1.35 or 2.27%, bringing the annual increase to 4.55%.


With current price C$123.50 (today's open), this raise brings their dividend yield to 4.47%.


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 $7.91.


I was expecting an increase of just under 4%, so this was a bit disappointing, but of course an increase is always an increase.


This is the 17th 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 $1.38, or 94.4%


This increase raises my YOC to 7.29%.



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


Thanks for stopping by!


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