RBC stock has surprised investors time and time again, showing that it can weather a tough economic environment much better than the bank’s peers in the U.S. In the last quarter, RBC revealed a surprising dividend increase and record earnings when it announced a two-percent hike in its quarterly dividend to CA$0.83 a share, representing CA$3.32 per share on an annualized basis and 4.1% yield based on today’s price of RY stock.
In addition to returning cash to its shareholders through dividend, RBC also has a robust share buyback program. In May this year, it announced plans to buy back up to 20 million of its common shares, or approximately 1.3% of the bank’s outstanding common shares.
On top of paying regular dividends, investors have also benefited from an approximate 27% jump in RBC stock since February this year. This comes at a time when the Canadian economy has been weakened by a drastic fall in commodity prices and businesses have generally cut their investments.
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