Updating your Income-Growth Payers: Royal Bank of Canada

Article Excerpt

ROYAL BANK OF CANADA $173 is a buy. The bank (Toronto symbol RY; Income-Growth Payer Portfolio, Finance sector; Shares outstanding: 1.4 billion; Market cap: $242.2 billion; Dividend yield: 3.3%; Dividend Sustainability Rating: Highest; www.rbc.com) is Canada’s largest chartered bank by market cap. It’s also one of the world’s top 10 banks. With the August 2024 payment, Royal raised your quarterly dividend by 3.3%. Investors now receive $1.42 a share instead of $1.38. The new annual rate of $5.68 yields 3.3%. The bank also plans to buy back about 2% of its outstanding common shares over the next year. On March 28, 2024, Royal completed its purchase of the Canadian operations of U.K.-based HSBC Holdings plc (New York symbol HSBC) for $15.5 billion. HSBC operates 130 branches that mainly cater to businesses in industries that trade and bank internationally. It also provides banking and wealth management services to about 780,000 retail clients. In all, it had total assets of $134 billion. Thanks to that acquisition, Royal’s overall revenue…