TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1477 watching
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Investor Insights
star iconJun 26, 2026, 12:00 am

This summary was created by AI, based on 56 opinions in the last 12 months.

Royal Bank (RY-T) is seen as a strong performer in the Canadian banking sector, boasting significant strengths in diverse areas including wealth management and capital markets. Experts laud its consistent dividend growth, with some analysts highlighting an average annual increase of over 10% in dividends. Despite these strengths, there are concerns about the current valuation, as RY is trading at a premium compared to historical averages, leading some to suggest trimming positions or waiting for a better entry point. The bank's recent quarterly earnings show resilience in the Canadian economy and increased earnings in capital markets, making it a top pick by several analysts. However, overall sentiment reflects caution due to high valuations and potential economic challenges ahead.

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Consensus
Hold
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Valuation
Overvalued
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BMO
BUY
Question about CM-T

There'll be little disparity among the big banks though CM depends more on Canadian mortgages. Long-term, the big banks will pay you 10-15% returns annually, though they haven't been giving that in recent years. He prefers RY because of its slightly higher ROE and is more diversified.

HOLD

One of his favourites. Business mix has held up very well. Good investment, 10x earnings, and great dividend yield. But, for new money, TD and BNS have lower valuations. See his Top Picks.

PAST TOP PICK
(A Top Pick Jun 14/22, Up 3%)

She likes the banking sector. Non-interest expenses rose more than expected less quarter, but pays a dividend over 4%. The HSBC deal will close later this year and benefit RY.

PAST TOP PICK
(A Top Pick Jul 21/22, Up 7%)

Underwhelmed this past year. Should continue to grow at high single-digit pace. Dominant commercial and personal franchises in Canada, good footprint in US, large capital markets business, leading wealth management. Great core holding.

PARTIAL BUY

A major position of his. It has regained its premium valuation at 1.9x book. Dividend pays below 4%. A very stable, well-diversified bank (commercials and consumer segments). That said, a few other names offer slightly better value like BNS and CIBC.

BUY

He likes Canadian banks, which are safer than American ones (more regulation here). Good retail banking in Canada, but are big in asset management and investment banking. Will continue to do well. PE is reasonable and pay good dividends that continue to rise.

HOLD

Very well run. In terms of value, his preference is to go with BNS or TD, as you'll get comparable earnings growth and more on the multiple. See his Top Picks. Don't add today, based on valuation.

BUY

Dividend yield is pretty good at 4.1%, and it's grown at an 8% compound pace over the last 10 years. Leading personal and commercial banking franchise in Canada. Big presence in US. Should benefit from skittish deposits in Silicon Valley. Top 10 global e-capital markets business. 12% compounded shareholder return over a decade, sees more ahead.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 29/22, Up 1.7%)Stockchase Research Editor: Michael O’Reilly

Our PAST TOP PICK with RY has triggered its stop at $131.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous buy recommendation, this will result in a net investment gain of 3%.  

HOLD

800-pound gorilla, dominant bank in Canada. Until today, it's share price has held up the best. It will come back, but it's up to you whether you want to catch the falling knife today. Canadian banks are a protected species. He's not sure there are going to be the anticipated loan losses. 

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Dec 29/22, Up 9.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with RY is progressing well.  To remain disciplined, we recommend trailing up the stop to $131 at this time.

DON'T BUY

Doesn't own any Canadian banks. Scale advantage, favourable regulatory environment. Further competition in the space erodes their moat. If he were to own any banks, the two that stood out when he reviewed their financials 3 years ago were TD and RY.

HOLD
Canadian banks are in a tough space right now, with slowing economy and housing. RY and TD are the gold standards of banks in Canada, and they trade at a valuation premium for that. It's always that tradeoff, valuation vs. growth & quality.
BUY
Results were pretty good, but then it surprised with HSBC acquisition. Stick with the banks that continue to knock it out of the park. Happy to continue buying. He doesn't foresee a really bad recession in Canada in 2023. Banks can offset a lot of their mortgages. They do have exposure, but it's not as huge as you think. Live and die with wealth management and investment banking operations, so they need the economy to improve.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly We reiterate this Canadian chartered bank as a TOP PICK. If interest rates stay here or go higher, they stand to improve on profitability. If deflation occurs with a slowing economy this is still a good investment based on their longevity and ability to pay good dividends (which were just raised another 3%). Recently reported earnings beat expectations and support a ROE of 15%. We recommend trailing up the stop-loss (from $110) to $123, looking to achieve $145 -- upside over 12%. Yield 4.1% (Analysts’ price target is $144.92)
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