Analysis – Royal Bank of Canada Increases Dividend by 3%

RY

Royal Bank of Canada announced a regular quarterly dividend of $0.644936, a 3 percent increase from the prior rate of $0.624936 per share. The dividend will be paid at the new higher rate on November 24, 2016, to shareholders of record at close of business on October 26, 2016.

Date Quarterly Dividend
10/26/2016 0.645
7/22/2016 0.619
4/21/2016 0.64
1/22/2016 0.554
10/22/2015 0.601
7/23/2015 0.591
4/21/2015 0.63
1/22/2015 0.608
10/23/2014 0.667
7/22/2014 0.661
4/22/2014 0.645
1/23/2014 0.605
10/22/2013 0.65
7/23/2013 0.61
4/23/2013 0.615
1/22/2013 0.605
10/23/2012 0.604
7/24/2012 0.561
4/23/2012 0.575
1/24/2012 0.535
10/24/2011 0.534
7/22/2011 0.572
4/21/2011 0.514
1/24/2011 0.502
10/22/2010 0.491
7/22/2010 0.482
4/20/2010 0.483
1/22/2010 0.476

Analysis of Valuation of Royal Bank of Canada (Symbol RY).

Royal Bank of Canada is trading below its average price/book value (P/BV) range.  Royal Bank of Canada is trading below its average historical dividend yield. 

Price 8/26/16 % Yield 5 Year Div. Growth Rate  BV    2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$62.76 4.09% 7% 43.85 1.43 1.12 3.48 5.25% 3.21%

Royal Bank of Canada Dividend Yield Chart (Click to enlarge)

RY

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s