Royal Bank of Canada (TSE:RY) will raise its dividend to CA$1.35, representing a 4.3% yield.
The company's dividend payments are sustainable, with a payout ratio of 51% and estimated future ratio of 47%.
Over the years, Royal Bank of Canada's dividend has grown steadily by 8.4% annually.
With earnings per share growing at 5.2% per year, the company has the potential to continue its dividend growth.
The consistent dividend policy and growing earnings make Royal Bank of Canada a strong income stock.
Investors can have confidence in the company's stability and potential for future dividend payments.
Earnings growth bodes well for the company's future dividend value.
Get insights from analysts on Royal Bank of Canada's growth with the free report on analyst estimates.