Royal Bank of Canada (TSX:RY) Dividend Payout Ratio: 0.42 (As of Apr. 2026) — Near Median


TSX:RY Royal Bank of Canada TSX:RY
77 GF Score
Price C$288.01
GF Value C$204.65
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Royal Bank of Canada Dividend Payout Ratio?

Royal Bank of Canada TSX:RY -0.38% 77 Dividend Payout Ratio is 0.42 as of Apr. 2026, which is 9% below its 10-year median of 0.46. GuruFocus rates TSX:RY with a GF Score™ of 77/100 and a GF Value™ of C$204.65 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,168 Banks companies, Royal Bank of Canada ranks worse than 64.55% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Royal Bank of Canada's Dividend Payout Ratio for the months ended in Apr. 2026 was 0.42.

The historical rank and industry rank for Royal Bank of Canada's Dividend Payout Ratio or its related term are showing as below:

TSX:RY' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.39   Med: 0.46   Max: 0.55
Current: 0.41

During the past 13 years, the highest Dividend Payout Ratio of Royal Bank of Canada was 0.55. The lowest was 0.39. And the median was 0.46.

TSX:RY's Dividend Payout Ratio is ranked worse than
64.55% of 1168 companies
in the Banks industry
Industry Median: 0.32 vs TSX:RY: 0.41

As of today (2026-06-27), the Dividend Yield % of Royal Bank of Canada is 2.21%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Royal Bank of Canada was 5.27%. The lowest was 2.21%. And the median was 3.68%.

Royal Bank of Canada's Dividends per Share for the months ended in Apr. 2026 was C$1.64.

During the past 12 months, Royal Bank of Canada's average Dividends Per Share Growth Rate was 9.70% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 6.80% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 7.60% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 7.00% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Royal Bank of Canada was 21.70% per year. The lowest was 1.30% per year. And the median was 9.20% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Royal Bank of Canada (TSX:RY) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Royal Bank of Canada Dividend Payout Ratio Related Terms

Royal Bank of Canada Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Royal Bank of Canada's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Royal Bank of Canada Dividend Payout Ratio Chart

Royal Bank of Canada Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.39 0.44 0.48 0.46 0.42

Royal Bank of Canada Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.49 0.40 0.40 0.40 0.42

TSX:RY vs JPM, BAC, WFC: Dividend Payout Ratio Comparison

For the Banks - Diversified subindustry, Royal Bank of Canada's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Royal Bank of Canada Dividend Payout Ratio vs Banks Industry

For the Banks industry and Financial Services sector, Royal Bank of Canada's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Royal Bank of Canada's Dividend Payout Ratio falls into.


TSX:RY
77GF Score
Royal Bank of Canada TSX:RY
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Royal Bank of Canada Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Royal Bank of Canada's Dividend Payout Ratio for the fiscal year that ended in Oct. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Oct. 2025 )/ EPS without NRI (A: Oct. 2025 )
=6.04/ 14.43
=0.42

Royal Bank of Canada's Dividend Payout Ratio for the quarter that ended in Apr. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Apr. 2026 )/ EPS without NRI (Q: Apr. 2026 )
=1.64/ 3.9
=0.42

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.42 mean?
Royal Bank of Canada (TSX:RY) has a Dividend Payout Ratio of 0.42 as of Apr. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Royal Bank of Canada and its competitors. This is near median its historical median of 0.46. Over the past decade, Royal Bank of Canada's Dividend Payout Ratio has ranged from 0.39 to 0.55. According to the industry distribution chart, Royal Bank of Canada ranks #754 out of 1168 companies in the Banks industry, placing it in the top 64.6%.
Is Royal Bank of Canada's Dividend Payout Ratio too high?
Royal Bank of Canada's current Dividend Payout Ratio of 0.42 is near median its 10-year median of 0.46. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 0.55. The Banks industry median Dividend Payout Ratio is 0.32. Royal Bank of Canada's value of 0.42 is 31.3% above this industry median. Based on the distribution chart, Royal Bank of Canada ranks #754 out of 1168 companies in the Banks industry, which is below the industry midpoint. Overall, Royal Bank of Canada has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Bank of Canada's Dividend Payout Ratio compare to JPM and BAC?
According to the Banks industry distribution chart, Royal Bank of Canada ranks #754 out of 1168 companies for Dividend Payout Ratio. This places Royal Bank of Canada in the lower half of its industry. The industry median Dividend Payout Ratio is 0.32. Royal Bank of Canada's value of 0.42 is 31.3% above this benchmark. Historically, Royal Bank of Canada's own Dividend Payout Ratio has ranged from 0.39 to 0.55 over the past decade. While the company's 10-year median is 0.46 vs. the industry median of 0.32, Royal Bank of Canada has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Banks company?
The median Dividend Payout Ratio among Banks companies is 0.32, based on 1,168 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Bank of Canada's current Dividend Payout Ratio of 0.42 is 31.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Royal Bank of Canada and its competitors. For the Banks industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Bank of Canada's current Dividend Payout Ratio is 0.42, which is near median its own 10-year median of 0.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Bank of Canada stock overvalued right now?
Based on GuruFocus' analysis, Royal Bank of Canada (TSX:RY) is currently considered Significantly Overvalued. The stock's GF Value™ is C$204.65, compared to a current price of C$288.01 — trading 40.7% above its estimated fair value. The current Dividend Payout Ratio is 0.42, which is near median its 10-year median of 0.46 and 31.3% above the Banks industry median of 0.32. Royal Bank of Canada's overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Royal Bank of Canada (TSX:RY), the current Dividend Payout Ratio is 0.42 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Royal Bank of Canada (TSX:RY) Overvalued in 2026?

Based on GuruFocus' analysis, Royal Bank of Canada stock appears to be overvalued. The current stock price of C$288.01 is trading 40.7% above its estimated GF Value™ of C$204.65. GuruFocus considers Royal Bank of Canada to be Significantly Overvalued.

Key valuation signals for TSX:RY:

  • Dividend Payout Ratio: 0.42 (near median its 10-year median of 0.46)
  • GF Value™: C$204.65 vs. price of C$288.01 (40.7% above fair value)
  • GF Score™: 77/100 with 8 warning signs
  • Industry Position: 31.3% above the Banks median (#754 of 1168)

No single metric tells the full story. See the TSX:RY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Royal Bank of Canada Business Description

Address 1 Place Ville Marie, Corporate Secretary\'s Department, Montreal, QC, CAN, H3B 3A9
Royal Bank of Canada is one of the two largest banks in Canada, with around CAD 2.4 trillion in assets at the end of April 2026. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.
77GF Score

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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$288.01
Price
C$204.65
GF Value