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 2023
- RBC Dividend Frequency: Quarterly
- Last dividend amount: $1.32
- Dividend Reinvestment Plan: Available
The RBC dividend payment dates in 2023 for its common shareholders are shown below:
| Fiscal Quarter | Record Date | RBC Dividend Payment Dates |
|---|---|---|
| 1st Quarter | January 26, 2023 | February 24, 2023 |
| 2nd Quarter | April 25, 2023 | May 24, 2023 |
| 3rd Quarter | July 26, 2023 | August 24, 2023 |
| 4th Quarter | October 26, 2023 | November 24, 2023 |
RBC pays dividends in the months of February, May, August and November.
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 2023
- TD Dividend Frequency: Quarterly
- Last dividend amount: $0.96
- Dividend Reinvestment Plan: Available
The dividend dates in 2023 for TD Bank common shares are shown below:
| Fiscal Quarter | Record Date | TD Dividend Payment Dates |
|---|---|---|
| 1st Quarter | January 6, 2023 | January 31, 2023 |
| 2nd Quarter | April 6, 2023 | April 30, 2023 |
| 3rd Quarter | July 6, 2023 | July 31, 2023 |
| 4th Quarter | October 6, 2023 | October 31, 2023 |
The TD Bank dividends are usually paid on the last business days of the bank’s fiscal quarter in the months of January, April, July and October.
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 was applied so far in 2023.
BNS Dividend Dates 2023
- BNS Dividend Frequency: Quarterly
- Last dividend amount: $0.77
- Dividend Reinvestment Plan: Available
The Bank of Nova Scotia (BNS) dividend payment dates in 2023 are shown below:
| Fiscal Quarter | Record Date | BNS Dividend Payment Dates |
|---|---|---|
| 1st Quarter | January 4, 2023 | January 27, 2023 |
| 2nd Quarter | April 4, 2023 | April 26, 2023 |
| 3rd Quarter | July 5, 2023 | July 27, 2023 |
| 4th Quarter | October 3, 2023 | October 27, 2023 |
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 2023
- BMO Dividend Frequency: Quarterly
- Last dividend amount: $1.43
- Dividend Reinvestment Plan: Available
The BMO dividend payment dates for 2023 are:
| Fiscal Quarter | Record Date | BMO Dividend Payment Dates |
|---|---|---|
| 1st Quarter | January 30, 2023 | February 28, 2023 |
| 2nd Quarter | April 28, 2023 | May 26, 2023 |
| 3rd Quarter | July 28, 2023 | August 26, 2023 |
| 4th Quarter | October 30, 2023 | November 28, 2023 |
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 Payment Dates 2023
- CIBC Dividend Frequency: Quarterly
- Last dividend amount: $0.85
- Dividend Reinvestment Plan: Available
The following are the CIBC dividend payment dates for 2023:
| Fiscal Quarter | Record Date | CIBC Dividend Payment Dates |
|---|---|---|
| 1st Quarter | December 1, 2022 | January 27, 2023 |
| 2nd Quarter | March 28, 2023 | April 28, 2023 |
| 3rd Quarter | June 28, 2023 | July 28, 2023 |
| 4th Quarter | September 28, 2023 | October 27, 2023 |
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.
Related: Best Dividend ETFs in Canada
