New Buy: Royal Bank of Canada

Today I made my first stock purchase of 2019. I mentioned in my previous post that in 2019 I will focus more on Bank stocks. Hence, I started my shopping spree with the Royal Bank of Canada.

The Royal Bank of Canada (TSE:RY) is the largest Canadian bank with market capitalization of $139 billion. RBC serves over 16 million clients and has 80,000 employees worldwide.

Today I purchased 10 shares of RBC and paid $96.85 per share. It’s a new position for me and I plan to add to it when opportunities arise. It would be nice to own at least 50 shares, but that may take a while to accumulate.

The current dividend yield is 4%. This purchase will add $39.20 to my yearly income. Its current payout ratio is 45%, making the dividend payments very safe. The bank has a great track record of dividend raises. For example, in 2018, RBC raised the dividend twice - from $0.91 to $0.94 and then to $0.98. I expect them to do the same in 2019 since their revenues are growing at an average rate of 6.9%.

The ex-dividend date for RBC is January 23, 2019. Since I bought the stock before ex-date, I will get my first dividend payment on February 22, 2019.

What do you think about RBC? Do you own it? Let me know what you plan to buy in January.


  1. Nice buy German, I've been a shareholder of RBC since 2014 and I am very happy with my returns so far. Thanks for sharing!