Royal Bank of Canada adding 4 cents to quarterly dividend

Royal Bank of Canada announced a 4 cent increase of their quarterly dividend. The dividend is increased from C$0,98 to C$1,02.

This is an increase of 4,1%. I have 21 shares Royal Bank of Canada. As a result my yearly estimated dividend income will increase with C$2,18.

Based on the new dividend my yield on cost is now 3,48%. This is the 17th dividend increase in 2019 for me.

Royal Bank of Canada increases quarterly dividend with 4,3%

Today Royal Bank of Canada (RY) announced to increase their quarterly dividend from C$0,94 to C$0,98. This is a dividend increase of 4,3%. This is the 2nd time this year that Royal Bank of Canada increased their dividend. Earlier this year Royal Bank of Canada (RY) already increased it’s dividend from C$0,91 to C$0,94.

The total dividend increase this year comes at 7,7%.

This dividend increase of 4 cents results for me in €2,22 extra dividend income per year, because I own 21 shares at the moment.

The yield on cost for me after the dividend increase is 3,85% up from 3,69%

Purchase of 10 shares Royal Bank of Canada

Today I bought 10 shares of Royal Bank of Canada against $76,23.

Royal Bank of Canada is paying a quarterly dividend of $0,724 per share. With this purchase I’m adding $28,96 to my yearly expected dividend payments. The expected yield will be 3,8%.

The average dividend growth rate of Royal Bank of Canada is 9,7% over the last 5 years. With a payout ratio of 46% I expect it’s possible to maintain dividend growth in the near future.

It’s hard to make an estimation on the interest rate trend, but I expect the interest rates to increase in the near future as a result of the changing monetary policy of the federal reserve. The federeal reserve announced the plan to stop buying bonds on the open market and start selling bonds they own. This could result in higher interest rates, because investors could buy the bonds sold by the FED. As a result less money is available to buy newly offered bonds and as a result the interest rate should increase.

As banks tends to make higher margins when the interest rate is higher I decided to increase my exposure in the financial sector by adding Royal Bank of Canada shares.