When Are The Canadian Bank’s Dividend Payment Dates?

While you can earn profits from investments when you buy and sell stocks, you can also earn a steady stream of income from dividend-paying assets. Canadian bank stocks, in particular, are known for their reliable dividend payouts and high yields. 

If you’re considering investing in Canada’s Big 5 banks, you may want to know when you can expect to receive your payouts. Read on to discover Canadian banks’ dividend payout dates for 2022. 

What Is A Dividend?

Dividends offer a great way to earn a return from stock investments. Companies distribute a share of profits to their shareholders through dividend payments. Each shareholder is paid out according to their stake in the company.

Types Of Dividends

There are a few different types of dividends that companies use to pay their shareholders:

• Cash dividends. This common type of dividend is paid in cash into the shareholder’s brokerage account.

• Stock dividends. As an alternative to paying out cash, companies may choose to pay their shareholders with more stock shares.

• Special dividends. This type of dividend is a non-regular distribution of profits to shareholders, usually made after a specific event takes place, such as the sale of an asset. 

• Dividend reinvestment programs (DRIPs). This program allows shareholders to reinvest their cash dividends into additional shares of a stock, often at a lower price. 

• Preferred dividends. These are cash dividends that companies pay out to investors of preferred stocks, which often come with higher dividends compared to common stocks. 

What Is A Dividend Payment Date?

The dividend payment date is the date that a company issues payments to its shareholders.

What Is A Record Date?

The record date is the last date that shareholders can receive dividends or distributions and is determined by the company’s board. This date is used by companies to determine which shareholders get a dividend. Shareholders’ names must be on the register on this date to be eligible to receive dividends.

What Is An Ex-Dividend Date?

The ex-dividend date is typically the day before the record date and is the last date that shareholders can trade a stock to be eligible for the dividend. 

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Canadian Bank Dividend Dates

Investors can buy shares in Canadian banks and collect dividends on specific dividend payments dates. The following outlines the dividend payment dates of Canada’s Big 5 banks:

Scotiabank Dividend Dates 2022 

Scotiabank’s dividend policy states that it pays its common share dividends on a quarterly basis based on a percentage of net income. The dividend amount factors in the preference of preferred shares, liquidity, capital adequacy, and other regulations specified under the Bank Act. 

Registered shareholders can have their dividend payouts directly deposited into their bank accounts held at financial institutions that are members of the Canadian Payments Association.

• Scotiabank dividend payout: Quarterly
• Previous dividend payment amount: $1.00

Scotiabank’s dividend payment dates for 2022 are as follows:

RBC Dividend Dates 2022

RBC stock shareholders are eligible for the bank’s dividend reinvestment plan (DRIP). Through it, both common and preferred shareholders in Canada can have their dividend payments automatically reinvested in the bank’s common shares. The RBC shares are either bought on the secondary market or when new shares are issued from its treasury. 

Dividends are usually paid out on the 23rd or 24th of the bank’s fiscal quarter. 

• RBC dividend payout: Quarterly
• Previous dividend payment amount: $1.08

RBC’s dividend payment dates for 2022 are as follows:

BMO Dividend Dates 2022

Shareholders in BMO stocks can reinvest under the bank’s DRIP program. Shares can be purchased on the open market or by issuing new shares from treasury at a discount of up to 5%, at the bank’s discretion. 

BMO’s policy has been to maintain a dividend payout ratio of anywhere from 40% to 50% over time.

• BMO dividend payout: Quarterly
• Previous dividend payment amount: $1.33

The BMO’s dividend payment dates are paid out quarterly. Here are the payout dates for 2022:

CIBC Dividend Dates 2022

CIBC has been paying out regular dividends since its first dividend payment in 1868. The bank pays its dividends on a quarterly basis in January, April, July, and October. Shareholders can reinvest anywhere from $100 to $50,000 in each fiscal year.

CIBC also offers an automatic share reinvestment plan for shareholders. New shares that are issued out from treasury do not come with a discount.

• CIBC dividend payout: Quarterly
• Previous dividend payment amount: $1.61

CIBC’s dividend payment dates for 2022 are as follows:

TD Bank Dividend Dates 2022

Shareholders of TD Bank’s common shares have the option to be part of TD’s Dividend Reinvestment Plan. Dividends are typically paid by cheque or by direct deposit into the shareholder’s bank account. 

Cash dividends can be reinvested into additional shares of TD Bank. Registered shareholders in TD’s DRIP can choose the percentage of their shares that they’d like to have enrolled in the plan. 

If the TD issues new shares from the treasury, they may offer up to a 5% discount of the TD shares’ average market price.

• TD Bank dividend payout: Quarterly
• Previous dividend payment amount: $0.79

TD’s dividend payment dates for 2022 are as follows:

Should I Invest In Canadian Banks ETFs? 

Exchange-traded funds (ETFs) represent a basket of securities that track a specific index and can include stocks, bonds, and other investments. While quarterly dividend payouts are nice to get, monthly payouts may be more convenient for many investors. 

Investors can choose to invest in Canadian bank ETFs. Currently, the top Canadian bank ETFs include the following:

Advantages And Disadvantages Of Canadian Bank ETFs

Investing in Canadian bank ETFs offers a few perks, but there are a handful of drawbacks that investors should also consider.

Advantages Of Canadians Bank ETFs

• Quick Way To Diversify. A diversified investment portfolio allows investors to minimize risk, and Canadian bank ETFs offer a quick way to diversify investments with banks. One single purchase can give you exposure to big banks and other financial companies. 
• Low Investment Required. You don’t need thousands of dollars to start investing in Canadian banks. Canadian bank ETFs often cost as little as $100.
• Keeps Investing Simple. ETFs are simple, low-maintenance, and doesn’t require the upkeep and rebalance needed with individual stocks. 

Disadvantages Of Canadians Bank ETFs

• Management Fees. ETFs usually have a management expense fee you must pay to hold ETFs, which can eat into your profits. 
• No Control Over Allocation. You don’t have any control when it comes to how your funds are allocated to individual banks. Instead, it’s the investment managers who make all portfolio decisions.

Final Thoughts

If you’re looking for dividend-paying stocks from companies with strong fundamentals, consider investing with Canada’s Big 5 banks. Their dividend payouts have long been consistent, and yields are typically high relative to other investment types. Pay particular attention to dividend payment dates so you know when to expect your share earnings.