This is old (2022-11-30), but I realized that I allude to this in PrefLetter but not on PrefBlog, so here you go:
Royal Bank of Canada has announced (on 2022-11-30):
In lieu of receiving their dividends in cash, holders of the Bank’s common and preferred shares who reside in Canada and holders of common shares who reside in the United States may elect to have their dividends reinvested in additional common shares of the Bank, in accordance with the Bank’s Dividend Reinvestment Plan (the “Plan”).
Under the Plan, the Bank is entitled to determine whether the additional common shares are purchased in the secondary market by the agent for the Plan or issued from treasury. For the February 24, 2023 dividend and for future dividends declared until further notice, the Bank has decided to issue additional shares from treasury at a 2% discount from the Average Market Price (as defined in the Plan). Most recently, the common shares received by participants under the Plan were purchased in the secondary market with no discount from the Average Market Price.
Shareholders who currently participate in the Plan and who continue to do so on the February 24, 2023 payment date will automatically have the discount applied to the reinvestment of their dividends. Registered holders of record residing in Canada or the United States who wish to participate in the Plan can obtain an enrollment form from the Bank’s Plan agent, Computershare Trust Company of Canada, from their website at www.investorcentre.com/rbc, or by calling 1-866-586-7635. Eligible beneficial or non-registered holders of the Bank’s common and preferred shares must contact their financial institution or broker if they wish to participate in the Plan.
In order to participate in the Plan in time for the February 24, 2023 dividend payment date, enrollment forms from registered holders must be received by Computershare Trust Company of Canada at 100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1 before the close of business on January 26, 2023. All shareholders considering enrollment in the Plan should carefully review the terms of the Plan and consult with their advisors as to the implications of enrollment in the Plan.
Registered participants in the Plan who would prefer to receive a cash dividend rather than reinvest their dividends on and after February 24, 2023 may terminate their participation in the Plan by delivering written notice to Computershare Trust Company of Canada at the above address by no later than January 26, 2023. Beneficial or non-registered participants in the Plan should contact their financial institution or broker in advance of January 26, 2023 for instructions on how to terminate participation in the Plan so that the February 24, 2023 dividend is not reinvested in common shares.
A 2% discount on the common may not sound like much, but it’s better than a kick in the pants!
The following RY preferreds are outstanding: RY.PR.H, RY.PR.J, RY.PR.M, RY.PR.N, RY.PR.O, RY.PR.S and RY.PR.Z.