Recent Purchase: Royal Bank of Canada (RY)

Purchased Royal Bank of Canada stock

On January 20th, I purchased 25 shares of Royal Bank of Canada (TSE: RY) at $65.40, with a trading cost of $6.95 for a total investment of $1,641.95. RY pays an annual dividend of $3.16, so my yield-on-cost is an abundant 4.83%. This is a great, juicy dividend yield for such a high quality stock. I hope RY drops further and I can pick up more shares at a cheaper price. Though, since purchasing RY (seven market days ago), shares have shot up 8.18%.

My 25 new shares of RY contribute $79.00 to my 12-month forward dividend income, averaged out to an increase of $6.58 per month. Considering Whitecap Resources just cut their dividend by 40%, and Pengrowth Energy just suspended their dividend, my 12-month forward dividend income is now $1,264.60, averaged out to$105.38 per month. The small climbs add up, it’s only January and my monthly dividend income is inching it’s way to $150 per month. I also don’t account for currency fluctuations when calculating my 12-month forward dividend income, despite having dividends from three companies (Goldcorp, W.W. Grainger, Wal-Mart) being paid in US dollars. 

I currently own shares in the Canadian banks: Bank of Nova Scotia (BNS), Canadian Western Bank (CWB) and now Royal Bank of Canada (RY).

Why I Invested in Royal Bank of canada

I wasn’t sure whether I wanted to buy Royal Bank of Canada or Toronto-Dominion Bank (TD) for a couple months, then I finally decided to compare TD and RY side-by-side to determine which had the metrics I valued more, and RY won, so I chose to purchase shares in that company. Click on the link to view the reasons why RY surpassed TD in the metrics I value most. I think TD is also a great Canadian bank stock with less volatility than the other bank stocks, and a larger exposure to the US than RY, which I consider a very good thing.

7 Replies to “Recent Purchase: Royal Bank of Canada (RY)”

  1. ~5% yield is outrageous generous. That’s why I love dividend investing. The yield itself will in turn allows you to buy more shares, and more shares will lead to more dividend and the snowball keep on Rollin’ regardless how the market is doing. Your cash flow keep on increasing. Just love it.

    I’m also long RY. 🙂 … Among other Canadian banks.

    1. Hey Vivianne,

      I feel pretty good scoring a 5% yield for such a high quality asset like RY, which I believe could handle any storm Canada’s economy may bring to it. I loaded up big time on Financials this January and it’s paid off nicely already. Got some CWB, AD, RY and BNS. The snowball is growing.


  2. Great purchase DB. Nice pick. I like Royal and have a lot of faith in the Canadian Bank stocks. It will fall further and hope we can pick more up at a great price. Keep at it bud, 1 buy at a time and before you know it, it’s gonna explode. Thanks for sharing and glad you’re on this journey with me. Cheers bud.

    1. Hi DH,

      I’m with you on the Canadian banks, man. See you’ve been adding big-time too. Both of us are hustling hard and it’s paying off in literally dividends. Great futures waiting ahead for us.


  3. As an RY investor I applaud the purchase well done. I have enjoyed being a shareholder for about 18 months and I’m sure you will enjoy it as well.

    1. Hey Matt,

      Good to know you’re a fellow shareholder, dude. RY will definitely pay off big-time in the long-term. Would love to be able to add more to the position once I have some more capital and diversify away from financials for a bit.

      Thanks for commenting,

Leave a Reply

Your email address will not be published.