Royal Bank of Canada (TSX: RY) is a Toronto, Canada-based financial services company providing personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services. The company operates through five segments and has global operations.
Royal Bank of Canada offers a very attractive yield. At 4.03%, RY’s yield is among the highest in the financial sector. The bank also has a progressive dividend policy. Over the last five years, RY has consistently raised its dividend. More important, the stock has also generated returns of almost 40%, excluding dividends, in these five years.
Last week, RY announced that its Board of Directors declared a quarterly common share dividend of 81 cents per share. The dividend will be payable on and after August 24, 2016 to common shareholders of record at the close of business on July 26, 2016.
RY is also returning cash to shareholders through a share repurchase. Last week, the bank announced that it plans to repurchase 20 million of its common shares, which as of May 20th, 2016, represented 1.3% of the bank’s outstanding common shares. The bank plans to commence the repurchases on or around June 1, 2016.
