Canadian Banks Dividend Payment Dates 2021: RBC, TD, BNS, BMO & CIBC

Canadian banks are known for their long history of dividend payments and high dividend yields. If you’re invested in any of the Big 5 banks and want to know when to expect your quarterly dividends, this post is for you.

It covers the dividend payment dates, record dates and their dividend reinvestment plans (DRIP).

Note: All the future dates below are subject to the approval of each bank’s Board of Directors.


RBC Dividend Dates 2021

  • RBC Dividend Frequency: Quarterly
  • Last dividend amount: $1.08
  • Dividend Reinvestment Plan: Available

The RBC dividend payment dates in 2021 for its common shareholders are shown below:

 

Fiscal QuarterRecord DateRBC Dividend Payment Dates
1st QuarterJanuary 26, 2021February 24, 2021
2nd QuarterApril 22, 2021May 21, 2021
3rd QuarterJuly 26, 2021August 24, 2021
4th QuarterOctober 26, 2021 November 24, 2021

RBC Dividend Reinvestment Plan

Holders of RBC common and preferred shares in Canada can enroll for its dividend reinvestment plan (DRIP).

The dividends are either invested by buying RBC shares in the open market or by issuing new shares from the bank’s treasury. The choice between the two, and whether a discount will apply, is at the bank’s discretion.

US common shareholders are also eligible for the plan.

RBC’s dividend reinvestment plan agent is Computershare Trust Company of Canada and you can download the enrolment form on their website.


TD Dividend Dates 2021

  • TD Dividend Frequency: Quarterly
  • Last dividend amount: $0.79
  • Dividend Reinvestment Plan: Available

The dividend dates in 2021 for TD Bank common shares are shown below:

Fiscal QuarterRecord DateTD Dividend Payment Dates
1st QuarterJanuary 8, 2021January 31, 2021
2nd QuarterApril 9, 2021April 30, 2021
3rd QuarterJuly 9, 2021July 31, 2021
4th QuarterOctober 8, 2021 October 31, 2021

The dividends are usually paid on the last business days of the bank’s fiscal quarter.

TD Dividend Reinvestment Plan

TD Bank offers a dividend reinvestment plan to interested holders of its common shares. You can register directly for the plan if you hold the shares in your own name or through your brokerage if otherwise.

New shares are either issued from the treasury or bought on the open market. For new shares issued, a discount of up to 5% of the average market price of TD shares may apply.

But no discount has been applied so far in 2021.


BNS Dividend Dates 2021

  • BNS Dividend Frequency: Quarterly
  • Last dividend amount: $0.90
  • Dividend Reinvestment Plan: Available

The Bank of Nova Scotia (BNS) dividend payment dates in 2021 are shown below:

Fiscal QuarterRecord DateBNS Dividend Payment Dates
1st QuarterJanuary 5, 2021January 27, 2021
2nd QuarterApril 6, 2021April 28, 2021
3rd QuarterJuly 6, 2021July 28, 2021
4th QuarterOctober 5, 2021 October 27, 2021

Scotiabank’s dividends are usually paid on the third last business day of the bank’s fiscal quarter end -January, April, July, October.

The bank also offers a dividend reinvestment plan that allows eligible shareholders reinvest their dividends up to a limit of $20,000 a year.


BMO Dividend Dates 2021

  • BMO Dividend Frequency: Quarterly
  • Last dividend amount: $1.06
  • Dividend Reinvestment Plan: Available

The BMO dividend payment dates for 2021 are:

Fiscal QuarterRecord DateBMO Dividend Payment Dates
1st QuarterFebruary 1, 2021February 26, 2021
2nd QuarterMay 3, 2021May 26, 2021
3rd QuarterAugust 3, 2021August 26, 2021
4th QuarterNovember 1, 2021 November 26, 2021

BMO Dividend Reinvestment Plan

Shareholders can reinvest up to $40,000 (USD or Canadian dollar) in each fiscal year under BMO’s DRIP program.

At the bank’s discretion, the shares can be bought at the open market or by issuing new shares from treasury with discount of up to 5%.


CIBC Dividend Dates 2021

  • CIBC Dividend Frequency: Quarterly
  • Last dividend amount: $1.46
  • Dividend Reinvestment Plan: Available

The CIBC or CM dividend payment dates for 2021 are:

Fiscal QuarterRecord DateCIBC Dividend Payment Dates
1st QuarterDecember 29, 2020January 28, 2021
2nd QuarterMarch 29, 2021April 28, 2021
3rd QuarterJune 28, 2021July 28, 2021
4th QuarterSeptember 28, 2021 October 28, 2021

Canadian Imperial Bank of Commerce (CM) pays its dividends in the months of January, April, July and October.

CIBC also offers automatic share reinvestment plan for Canada and US shareholders. Where new shares are issued out from treasury, CIBC does not offer a discount.

Canadian shareholders of CIBC can reinvest up to $50,000 and as little as $100 in each fiscal year.


Some Definitions: Dividend Payment Dates

Record date: is the date used to determine who gets a dividend. Your name must be on the shareholder register on this date to be eligible for dividends.

Ex-dividend date: is the last date on which you can trade a stock to qualify for the dividend. It is usually the day before the record date for the Canadian banks.

Learn more about the difference between record date and ex-dividend date here.

Dividend payment date: is simply the date when you can expect the dividend in your bank account or brokerage account.


Canadian Banks ETFs

Like most Canadian companies, the big banks pay quarterly distributions to their shareholders.

This frequency may meet the needs of most investors. But if you’re looking for monthly dividend payments from these banks, you should consider investing in the Canadian Bank ETFs instead.

Investors have several options to choose from. Here are some of the best Canadian Bank ETFs.

  • BMO Equal Weight Banks Index ETF (ZEB)
  • RBC Canadian Bank Yield Index ETF (RBNK)
  • iShares Equal Weight Banc & Lifeco ETF (CEW)
  • BMO Covered Call Canadian Banks ETF (ZWB)
  • CI First Asset CanBanc Income Bank ETF (CIC)
  • iShares S&P/TSN Capped Financials Index ETF (XFN)

Pros of Canadian Bank ETFs

They are a quick and easy way to get access to a diversified portfolio of Canadian Banks. With a single buy, you get exposure to the top banks and other companies in the financial sector.

Also, getting started with small money is possible with these ETFs. Many of the banks now trade close to or above $100. So you’ll need at least $500 to invest in all the big 5 banks if you want to diversify your portfolio.

But you can get the same diversification with less money if you go with the Banks ETFs.  

Finally, investing through the ETFs is convenient and can keep your investing simple. You won’t have to worry about rebalancing or any of the on-going maintenance that comes with individual stocks.

Related: 7 Things Within Your Control To Build Wealth Through Investing

Cons of Canadian Bank ETFs

The biggest one is the additional management expense ratio you’ll have to pay for holding the ETFs. It can be as low as 0.32% for the plain vanilla ETFs like RBNK, and as high as 0.72% for the ones that use option strategies to boost their dividend.

Also, you have no control on the allocation to the individual banks. All the portfolio decisions are made by the portfolio managers.

Learn more: Best Canadian Banks ETFs

Final Thoughts

Canadian banks offers handsome income distribution to their shareholders. With their regular quarterly payments, planning your cash flow is easier and predictable.

Finally, all the dividends from the banks covered above are eligible dividends for tax purposes so you can claim the dividend tax credit on them.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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