The Royal Bank of Canada, or RBC, is Canada’s largest bank with seventy-eight thousand employees and twelve-hundred branches that are serving approximately ten million Canadians. According to the Globe and Mail, RBC is Canada’s largest company by market capitalization (total value of shares outstanding) and revenue (total sales). RBC is a seriously big company.
RBC shares are traded on the Toronto Stock Exchange, New York Stock Exchange and Swiss Exchange under the symbol RY. According to publicly available information, RY is currently trading at $89.25. Over the past 52-weeks, RBC’s highest stock price has reached $90.00 and its lowest price has dipped to $64.52. If an investor would have bought RBC closer to it’s lowest point, they would currently be enjoying handsome returns. The rise in the price of a stock is called capital appreciation; although an investor may have the opportunity to enjoy capital appreciations, RBC offers more.
A dividend is a payment made by a corporation to its shareholders, usually from their profits. RBC currently offers a dividend of $0.83 per share and it is paid four times per year, or quarterly. This means that for every share of RY that an investor owns, they will be paid $0.83 this November 24th, 2016. RBC’s dividend payments have increased over the years and throughout this quarter. For example, in November 2000, the dividend payment was $0.15 per share. In November 2010, the dividend payment was $0.50 per share. Throughout 2016 the dividend payment has increased. In February 2016, the dividend was $0.79 per share; in May 2016 it was $0.81 per share. Now, it’s $0.83 per share. Investors like to see an increase in the dividend as it shows that the corporation’s profits have been increasing over time.
My experience with RBC over the past three months has been fortunate. I bought RY when it was listed around $82.27; now it’s listed at $89.25. I have earned a return of approximately 8.48% which is a growth rate that is nearly 17-times stronger than RBC’s High Interest eSavings account which gives investors a return of 0.500%.