Royal Bank of Canada has amended its dividend reinvestment plan, the bank announced Thursday.

The bank says “it has decided to issue shares from treasury at a 3% discount from the average market price until such time as the bank elects otherwise.”

Most recently the common shares purchased under the plan have been issued from treasury with no discount to the average market price.

These changes will be effective starting with the dividend, payable on May 22, 2009 to common and preferred shareholders of record on April 23, 2009.

Under the plan, “the bank may now offer a discount from the average market price on the reinvestment of dividends in additional common shares issued by the bank from treasury and will provide the preferred shareholders of the bank with the opportunity to participate in the plan by electing to have the dividends paid on their preferred shares reinvested in common shares of the bank.”

Common and preferred shareholders who reside in Canada and common shareholders in the United States may elect to have dividends paid on their shares reinvested in common shares of the bank. The bank determines whether the common shares are purchased on the secondary market or are newly-issued by the bank from treasury.

Shareholders who currently participate in the plan and who will continue to do so will automatically have the discount applied to the reinvestment of their dividends on the May 22, 2009 payment date.

IE