On
Wednesday, December 3rd, the Board of Directors of Royal Bank of
Canada (RY) announced
a quarterly dividend increase from C$1.54 to C$1.64 per share,
representing a 6.49% rise. The dividend is payable on February 24,
2026, to shareholders of record as of January 26, 2026.
This
marks the second dividend increase in the past 12 months. In May
2025, RY raised its quarterly dividend from C$1.48 to C$1.54, a 4.05%
increase. Combined, these two hikes bring the total annual dividend
growth to 10.8%.
At the current price of C$216.21 (yesterday's close), this increase will raise RY's dividend yield to 3.03%.
Royal Bank of Canada is a member of Canadian Dividend All Star List with a 14 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 4.9, 9.0, 6.6 and 7.0 (Canadian Dividend All-Star List)
As an owner of 120 shares of Royal Bank of Canada, the recent dividend increase adds $25.64 to my projected annual net dividend income.
I was expecting an increase of around four percent, so the announcement was a really positive surprise.
This recent dividend increase marks the 21th consecutive raise I've received from Royal Bank of Canada since I initiated my first shares in August 2014. Over that time, RY's quarterly dividend has grown nicely from $0.71 to $1.64 per share, representing a total increase of 131%.
The moment of writing, RY’s weight of my portfolio is about 2.11% and its share of future annual dividend income is approximately 1.55%.
Following this increase, my yield on cost is 8.66%.
Summary of 2025 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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