10 Best Canadian Dividend Stocks to Buy For Income Investors

8. Royal Bank of Canada (NYSE:RY)

Number of Hedge Fund Holders: 22

Royal Bank of Canada (NYSE:RY) ranks eighth on our list of the best dividend Canadian stocks. The multinational financial services company and the largest bank in Canada offers a wide range of related services and products to its consumers. In the past year, the stock has surged by over 27.5% as the bank benefited a lot from higher interest rates in Canada. In addition, the acquisition of HSBC Canada, completed earlier this year, has begun to bolster RBC’s earnings, contributing an additional $265 million to its bottom line in the fourth quarter.

In the fourth quarter of 2024, Royal Bank of Canada (NYSE:RY) reported revenue of over C$15.07 billion, up from C$12.6 billion in the prior year period. Its net income for the quarter came in at C$4.22 billion, growing from C$3.9 billion in the same quarter last year. Personal Banking experienced a 9% increase in earnings, with the addition of HSBC Canada’s results contributing $133 million to the net income.

Royal Bank of Canada (NYSE:RY) maintained a strong capital position, with a CET1 ratio of 13.2%, which supported solid volume growth. Furthermore, it returned $8.1 billion to shareholders this year through common dividends and share buybacks. On December 4, the company declared a 4.2% hike in its quarterly dividend to C$1.48 per share. Through this increase, it stretched its dividend growth streak to 14 years. The stock’s dividend yield on January 10 came in at 3.45%.

As of the close of Q3 2024, 22 hedge funds tracked by Insider Monkey held stakes in Royal Bank of Canada (NYSE:RY), up from 21 in the previous quarter. The overall value of these stakes is more than $1 billion.