RBC shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

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Royal Bank of Canada or RBC is one of Canada's leading financial stocks.

How much can you make with RBC stock?

Get up-to-date and precise information on RBC stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in RBC: Our key take-aways

Stock Exchange: TSX

  • Stock Index: S&P/TSX 60
  • Dividend 2021: $3.44
  • Dividend forecast 2022: N/A
  • Performance over 1 year: +34.73%

Should I buy RBC stock?

Investing in RBC stock can be a wise choice for investors looking for a stable Canadian stock.

Royal Bank of Canada has a relatively stable earnings payout policy over time with an average but uninterrupted dividend yield for many years.

This stock can also be used as a growth stock based on its past performance. Indeed, the stock has gained more than 160% of its value in 10 years. The analyst consensus also remains encouraging with buy recommendations.

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How can I buy shares in RBC ?  

To buy RBC on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add RBC to your stock portfolio.

To invest in RBC, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are RBC shares?

See price chart below to follow RBC stock price in real time.

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Why RBC shares could go up:

Royal Bank of Canada or RBC currently benefits from various elements in its favour and therefore in favour of a probable rise in its stock price with:

  • Ideal market positioning: the bank is currently considered the best investment bank in Canada according to Wall Street Mojo and is among the ten largest banks in North America in terms of assets and capitalization.
  • Strong global presence: The bank also has a strong international presence with operations in nearly 36 countries around the world and over 83,000 employees.
  • Successful digital transformation: Royal Bank of Canada has also successfully completed its digital transformation and is able to differentiate itself from the competition through the quality and innovation of its online services.
  • Effective growth strategy: After a few years of moderate growth, the group is now experiencing a financial recovery and its strategy is proving effective by focusing on increased spending and expansion into other global markets to acquire new customers.
  • Favourable interest rates: The current low interest rates allow RBC to complete certain projects with lower interest rate loans.
  • Low inflation: The continued low inflation rate allows the Group to be more stable in the market and to offer cheaper loans to its clients.
  • Improved overall efficiency: Finally, the group has successfully automated its banking operations with a well-developed IT structure and infrastructure that has improved its overall efficiency.

Why RBC shares could go down:

In addition to these strengths, RBC Group also has a few weaknesses that are factors that are more likely to lead to a decline in its share price:

  • Exposure to international risk: due to its strong international presence, the Royal Bank of Canada Group's activities are particularly exposed to exchange rate risks and changes in the global political climate.
  • Aggressive competition: RBC's competitors' marketing strategies are becoming increasingly aggressive, particularly in the digital arena, which could lead to a loss of market share over time.
  • Low margins: Some of Royal Bank of Canada's businesses have low margins due to strong local competition that drives down pricing. This may limit its long-term growth opportunities.
  • The risk of cyber attacks: Finally, like all online banking and other Internet-based groups, RBC is not immune to a cyber attack that could damage its brand image.

Can I buy RBC stock online?

Yes! You can buy RBC shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

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How can I sell my RBC shares? 

If you want to sell RBC stock, there are several ways to do so:

  • If you already own shares in this group, you can sell them for cash, simply by placing a sell order from your brokerage platform.
  • If you don't own the stock, but use a margin account, you can also sell it short.
  • Finally, if you simply want to bet on the price of the stock falling, you can also use derivative products such as options or CFDs, which do not require you to actually own the stock being traded.

What investment vehicles in Canada can hold RBC stock? 

RBC shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

There are several ways to buy Royal Bank of Canada shares.

  • The easiest way is to buy them for cash, which allows you to receive dividends.
  • You can also buy a basket of stocks through certain products such as ETFs that include this stock, which offers the possibility of diversifying your investments in a single order.

RBC share price history over 10 years:

Time periodGrowthHighLow
1 week-2.72%149.51143.29
1 month9.10%149.51131.28
3 months8.57%149.51125.64
6 months14.93%149.51124.40
1 year34.73%149.51103.23
3 years44.65%149.5172.00
5 years54.74%149.5122.09
10 years163.86%149.5122.09
RBC 10-year performance

RBC dividends and payment dates

RBC Group paid a dividend of $3.44 per share to its shareholders in 2021 and for fiscal 2020.

Royal Bank of Canada's dividend payment schedule is quarterly with four payments per year in January, April, July and October.

The dividend on this stock has been paid for 25 years without interruption and has not been reduced in the last 2 years. In December 2021, the group even announced an increase of 11% or $0.12 per share for its next quarterly payment which will be paid on February 24, 2022 with an amount of $1.20 per share.

Dividend: payout 2021Payout 1Payout 2Payout 3Payout 4
Ex-dividend date26/01/202122/04/202126/07/202126/10/2021
Date:24/02/202121/05/202124/08/202124/11/2021
Dividend per stock$0.8472 per stock$0.8651 per stock$1.08 per stock$1.08 per stock
RBC 2021 Dividends: dates and amounts
Dividend: payout 2022Payout 1Payout 2Payout 3Payout 4
Ex-dividend date26/01/2022PendingPendingPending
Date:24/02/2022PendingPendingPending
Dividend per stock$0.9413 per stockPendingPendingPending
RBC 2022 Dividends: dates and amounts

What is the dividend yield for RBC over the last 10 years?

YearDividend amountVariancePerformance
20122.2757.21%2.99
20132.489.01%1.97
20142.5783.95%0.98
20152.43-5.74%1.02
20162.4360.25%1.01
20171.967-19.25%0.91
20182.92848.86%1.27
20192.338-20.15%0.99
20203.18736.31%1.12
20213.4397.91%1.03
RBC divident history

The yield on RBC shares is obtained by dividing the annual dividend by the annual average price.

A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.

Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year

The 10-year average return = Sum of annual returns ÷ 10

What analysts are saying about RBC stock:

A critical analysis of RBC stock:

Fundamental analysis of RBC stock is currently sending out rather positive signals with the following:

  • Stable Yield Forecast: RBC's 10-year yield forecast is stable with an estimate of 1.9% by the end of 2022 and 1.8% on average each year thereafter.
  • Buy recommendations: Most analysts currently working on Royal Bank of Canada currently recommend this stock as a Buy for investors with a consistent consensus.
  • Positive ratios: the group's various financial ratios are also mostly in the green at the moment, with a PER of 3.6615.
  • An average price target: the average price target from the various analysts on this file anticipates an increase in this stock to 146.92 CAD within 3 months, i.e. an increase of 1.57%.
  • An attractive dividend: finally, the dividend paid without interruption by La Banque for nearly 25 years is a reassuring element that could support the stock in the longer term.

A technical analysis of RBC stock:

From a technical analysis point of view of the Royal Bank of Canada share, the different indicators are currently sending interesting signals on this stock in the medium and long-term with:

  • The RSI is currently at 71.64, which is a buy signal on this RBC stock.
  • The MACD is at 7.79, which is a strong buy signal.
  • The simple and exponential moving averages are all returning a buy signal over all time frames.
  • The stochastics are also returning an interesting buy signal.
  • The next support levels for this stock are at 113.20 and 92.15 and the next resistance levels are at 145.32 and 156.39.

Who is RBC?

Royal Bank of Canada Group or RBC is a Canadian financial services company.

It offers both personal and commercial banking, as well as wealth management, insurance, corporate banking, investment banking and transaction processing services. Its products and services serve both retail and commercial customers as well as public and institutional clients in Canada and the United States.

The breakdown of the group's revenue by RBC's business segments is as follows:

  • Personal Financial Services with 32.4
  • Wealth management with 23.5% of revenue
  • Capital Markets with 18% of the total
  • Insurance with 9.9
  • Investor and treasury services with 3.8%.
  • Business support services with 0.2%.

RBC serves a number of business lines including commercial and personal financial services, cards and payment solutions, U.S. banking, Canadian wealth management, U.S. and international wealth management, asset management, Canadian and international insurance, corporate and investment banking and global markets.

Royal Bank of Canada currently employs 87,000 people. 51.9% of its revenue are generated in Canada, 22.1% in the United States and 13.7% in the rest of the world.

Who are RBC’s competitors?

Royal Bank of Canada or RBC is currently the second largest Canadian bank in terms of assets. However, it still faces strong competition from several other financial groups including:

  • TD Bank: this bank of the same name is the largest in Canada in terms of assets under management and operates both in Canada and abroad with a strong position in the United States. It is also one of the leaders in insurance in Canada.
  • Scotiabank: Scotiabank is a Canadian bank and one of the largest financial institutions in North America.
  • BMO: The Bank of Montreal or BMO is a financial group created in 1817 and is therefore the oldest Canadian bank. It currently owns and operates 1,100 branches across Canada.
  • CIBC: CIBC or Canadian Imperial Bank of Commerce is a bank that operates throughout the world, including the United States, the Caribbean and the United Kingdom.
  • NBC: Finally, the National Bank of Canada or NBC is a group specialized in financial services for individuals and professionals. It is also active in securities brokerage, insurance, wealth management, mutual fund management and pension plans.

Who are RBC’s partners?

RBC Group also has a history of developing strategic partnerships that allow it to grow or become more profitable, including the following recent examples

  • Futurpreneur Canada: Futurpreneur Canada recently signed a funding partnership with the Royal Bank of Canada to provide a start-up program for black entrepreneurs, also in partnership with the Business Development Bank of Canada or BDC.
  • Canadian Olympic Committee: In 2017, the group also partnered with the COC to extend its support of the Canadian Olympic Team for an 8-year period until 2024 as a major national partner.
  • Nextdoor: Neighbourhood app Nextdoor also signed a partnership in 2020 with RBC in an exclusive agreement to bring communities together and support local businesses across Canada. A first-of-its-kind initiative to revitalize local businesses by connecting them with the members of their community most likely to store at their business was launched as part of the opening.