Dividend Increases

       During the last week, the big banks in Canada started reporting earnings.  Royal Bank ( RY) and Toronto Dominion Bank (TD) announced dividend increases with their earnings.

    TD increases their quarterly dividend by $0.04 per quarter, or $0.16 annually.  TD was paying an annual dividend of $2.04 per share.  So the increase of $0.16 annually represents an increase of 7.843%.

     Royal Bank announced an quarterly dividend increase of $0.02 per quarter, or $0.08 annually.  Royal Bank was paying an annual dividend of $3.16 per share.  So the increase of $0.08 annually represents an increase of 2.53%.

     I own 100 shares each of  RY and TD.  So my annual dividend income increase $16.00 for TD and $8.00 for Royal Bank.  Using a 3.5% yield,  this is equivalent of buying an investment with $685.71 of my own money to get the $24.00.

Disclosure:  Long RY and TD

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.