Friday, May 31, 2024

Dividend Increase - Royal Bank of Canada (RY)



 

Thursday, May 30th the Board of Directors of Royal Bank of Canada (RY) announced a quarterly dividend increase of from C$1.38 to C$1.42 per share that’s payable August 23, 2024 to holders of record July 25, 2024. This represents a 2.90% increase over the last quarterly dividend. It should be noted that this is the second increase in the last 12 months. In November 2023, RY increased quarterly dividend from C$1.35 to C$1.38 or 2.22%, bringing the annual increase to 5.19%.


With current price C$148.27(yesterday's close), this raise brings their dividend yield to 3.83%.



Royal Bank of Canada is a member of Canadian Dividend All Star List with a 13 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.7, 7.6, 7.2 and 7.8 (Canadian Dividend All-Star List)



Since I own 120 shares of RY, this will increase my portfolio's projected annual net dividend income by $10.45.


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


This is the 18th 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 $1.42, or 100%


This increase raises my YOC to 7.50%.



Summary of 2024 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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