On Thursday,
May 30th, the Board of Directors of Royal Bank of Canada (RY)
announced
a quarterly dividend increase from C$1.48 to C$1.54 per share,
representing a 4.05% rise. The dividend is payable on August 22,
2025, to shareholders of record as of July 24, 2025.
This
marks the second dividend increase in the past 12 months. In December
2024, RY raised its quarterly dividend from C$1.42 to C$1.48, a 4.23%
increase. Combined, these two hikes bring the total annual dividend
growth to 8.45%.
At the current price of C$175.16 (yesterday’s close), this increase will raise RY’s dividend yield to
3.52%.
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 $15.54 to my projected
annual net dividend income.
This increase was in line with my
expectations, following the line of increases of recent years.
This recent dividend increase marks the
20th 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 $1.54 per share,
representing a total increase of 117%.
The moment of writing, RY’s weight of
my portfolio is about 1.87% and its share of future annual dividend
income is approximately 1.55%.
Following this increase, my yield on
cost is 8.12%.
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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