Royal Bank of Canada announces stock dividend
TORONTO, March 3, 2006 — Royal
Bank of Canada (RY: TSX, NYSE, SWX) today announced that its
Board of Directors has declared a stock dividend, which has
the same effect as a two-for-one split of its common shares.
Gordon M. Nixon, President and Chief Executive Officer,
said "Our shares have always appealed to individual investors
and we expect this step to make our shares more affordable
and even more attractive to retail shareholders."
Shareholders of record as at the close of business on March
27, 2006, will be entitled to receive the stock dividend on
the payment date of April 6, 2006. Registered shareholders
will be mailed share certificates representing the stock dividend
starting April 6, 2006. Non-registered shareholders' brokerage
accounts will be credited for the additional shares representing
the stock dividend on or about the payment date.
No income tax will be payable by Canadian resident shareholders
and non-resident shareholders will not be subject to any Canadian
withholding tax as a result of the stock dividend. For additional
information about the tax consequences of the stock dividend,
shareholders are advised to consult their tax advisor.
RBC's equity-based benefit plans will be adjusted as necessary
to reflect the issuance of additional common shares or options
due to the declaration of the stock dividend. All share and
per share data for future periods will also reflect the stock
dividend.
RBC's common shares are expected to begin trading on a post-stock
dividend basis on the Toronto and Swiss Stock Exchanges on
March 23, 2006, and on the New York Stock Exchange on April
7, 2006.
RBC's last stock dividend was paid on October 5, 2000.
The Board of Directors today also declared a quarterly common
share cash dividend of $0.72 per share, which represents $0.36
per share on a post-stock dividend basis. This dividend of
$0.36 per share is payable on May 24, 2006, to common shareholders
of record on April 25, 2006.
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For further information:
Media Contact:
Beja Rodeck,
Media Relations,
(416) 974-5506, toll-free 1-888-880-2173
Investor Contacts:
Nabanita Merchant,
Senior Vice President, Investor Relations,
(416) 955-7803
Shirley Boudreau,
Shareholder Relations Officer, Investor Relations,
(416) 955-7806
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