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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 the Canadian bank dividend payout dates for 2024.

Key Points

  • A dividend refers to the distribution of a company’s profits to its shareholders.
  • Shareholders’ names must be on the register on the record date to receive dividend payments.
  • The payment date is the day the company sends out the dividends to all eligible shareholders named on the register.

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. 

Find out what are the best investments in Canada.

Canadian Bank Dividend Payment 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 2024 

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: $1.06

Scotiabank’s dividend payment dates for 2024 are as follows:

Fiscal QuarterRecord Date 2024Scotiabank Dividend Payment Dates 2024
1st January 3January 29
2nd April 2April 26
3rd July 3July 29
4th October 2October 29

RBC Dividend Dates 2024

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: $1.38

RBC’s dividend payment dates for 2024 are as follows:

Fiscal QuarterRecord Date 2024RBC Dividend Payment Dates 2024
1st January 25February 23
2nd April 25May 24
3rd July 25August 23
4th October 24November 22

BMO Dividend Dates 2024

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: $1.51

The BMO’s dividend payment dates are paid out quarterly. Here are the payout dates for 2024:

Fiscal QuarterRecord Date 2024BMO Dividend Payment Dates 2024
1stJanuary 30February 27
2nd April 29May 28
3rd July 30August 27
4th October 30November 26

CIBC Dividend Dates 2024

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: $0.90

CIBC’s dividend payment dates for 2024 are as follows:

Fiscal QuarterRecord Date 2024CIBC Dividend Payment Dates 2024
1stDecember 28, 2023January 29
2ndMarch 28April 29
3rd June 28July 29
4th September 27October 28

TD Bank Dividend Dates 2024

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: $1.02

TD’s dividend payment dates for 2024 are as follows:

Fiscal QuarterRecord Date 2024TD Dividend Payment Dates 2024
1st January 10January 31
2nd April 9April 30
3rd July 10July 31
4th October 10October 31

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:

Ticker SymbolCanadian Bank ETF
RBNKRBC Canadian Bank Yield Index ETF
CICCI First Asset CanBanc Income Bank ETF
XFNiShares S&P/TSN Capped Financials Index ETF 
CEWiShares Equal Weight Banc & Lifeco ETF
ZEBBMO Equal Weight Banks Index ETF

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.

How Is Dividend Income Taxed In Canada?

Dividend payouts are considered a form of investment income. As such, the income you earn from dividends is taxable. That means you need to include your dividend income in your tax returns.

Your dividends are taxed based on the province you live in and whether the dividends are considered eligible or non-eligible.

Eligible dividends are paid out of a company’s income that’s been taxed already at the general corporate tax rate. This will put you at a higher taxable income, though the Canada Revenue Agency (CRA) provides a tax credit to ensure that dividend income is not taxed twice. 

The tax rate includes a “gross-up,” which means that dividends are added to your income at a slightly higher amount than what you received. Eligible dividends are paid with net dollars and are grossed-up by 38%.

Non-eligible dividends come from income taxed at a lower tax rate. These dividends are also grossed up, but at a much lower rate of 15%.

What’s The Difference Between Dividend Income And Capital Gains?

You may already be familiar with capital gains, which refers to a profit made from the sale of an investment, like stocks. A profit is only realized once the asset is sold for a higher price than the original purchase price. 

Companies pay dividend income to shareholders from their profits. Instead of a capital gain, dividend payouts are considered income for that tax year.

Like dividends, capital gains are also a form of income. As such, they’re both subject to taxation. But how exactly do these two income sources differ, particularly in terms of tax liabilities?

Basically, dividend income is more tax-efficient than capital gains income. That means you’ll keep more of your income from dividend-paying investments after taxes. 

Capital gains are taxed when you sell an investment at a profit. In Canada, 50% of capital gains up to $250,000 are taxed. For gains over $250,000, the share of profits taxed jumps to 66.7%. They’re included in your taxable income and taxed at your marginal tax rate.

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.

Bank Dividend FAQs

Do dividend payment dates in Canada change every year?

Dividend payment dates usually fall one month after the record date, though there could be slight fluctuations based on decisions from the company’s board of directors. That said, dividend payment dates are typically chosen for a specific date every year.

Are banks good for dividends?

The big banks in Canada often provide safety and security when it comes to investing. These banks have historically seen dividend increases, though cuts have happened. Currently, the banks that have been providing the most consistent dividend yield over the last few years are BMO and CIBC.

What is considered a good dividend yield?

Dividend yields between 2% to 6% are typically considered healthy. That said, you should consider several factors when choosing an investment that pays dividends, including the company’s long-term earnings growth forecast, strong cash flow, and low debt-to-equity ratios.
Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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