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
Financials 
Technical Analysis 0
Investor Insights
Jun 26, 2026, 12:00 amThis 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.
Consensus
Hold
Valuation
Overvalued
Similar
BMO
HOLD
He still owns. Banking industry is in very good shape in this country. Great dividend yield, trading at reasonable book value. Trouble is that net interest income is being offset by investment banking and such that are doing poorly. Longer term, will do well. Lots of capital to increase dividends or buy back shares. He's comfortable owning at these levels. May have seen a bit of weakness due to the HSBC purchase.
Paul Harris, CFAOwned
banks
TOP PICK
Investing in company with recent selloff in the market.
Diverse business mix with wealth management, loan growth, commercial banking etc.
Recent acquisitions working out well.
Current valuation a historical discount (P/E etc.).
Loan provisions and capital ratios very strong.
Strong dividend with room for growth.
Christine PooleOwned
banks
TOP PICK
7th largest bank in the world, will get bigger with pending acquisition of HSBC Canada. This will up its market share in Canada and increase opportunities for cross-selling internationally. Biggest wealth management player in Canada. Well diversified by line of business and geographically. Dividend grows by high single digits, contributing to good line of sight to low double-digit growth over a cycle. Yield is 4.12%. (Analysts’ price target is $142.34)
Brian MaddenOwned
banks
BUY
Wonderful company. Diversified, and they manage all the pieces very well. Strong brand, one of the strongest in the country. HSBC acquisition has mixed reviews, they paid a high multiple but it gives them an advantage over peers. He's not worried the deal won't proceed. Multiple is lower than the market, while the dividend yield is higher. Long term, banks tend to outperform.
banks
PAST TOP PICK
(A Top Pick Nov 16/21, Up 4%) Continues to hold stock (4% dividend yield).
Stock has outperformed market relative to peers in segment.
Diverse business with wealth management business etc.
Expecting dividend to increase slowly.
Will continue to hold shares.
Christine PooleOwned
banks
PAST TOP PICK
(A Top Pick Nov 03/21, Up 1%) Dividends are an important part of total return. Though it has a big footprint in the US, better positioned than big US money-centre banks to weather a credit cycle. Dominant wealth management will propel it to outperform Canadian peers in a downturn. Continues to buy.
Brian MaddenOwned
banks
TOP PICK
Banks will be somewhat sensitive to higher rates, but RY has a very diversified earnings base. Management's investing heavily in maintaining lead market share. Though not the best yield in the bunch, dividend very safe, and he expects increases. Safety in this market. Yield is 4.04%. (Analysts’ price target is $139.19)
Michael SprungOwned
banks
HOLD
Best in class. He's lightened up on financials. Valuations are compelling, but margin and loan growth will be stagnant. Banks don't do well in recessions. No tailwinds right now.
Paul Gardner, CFAOwned
banks
PAST TOP PICK
(A Top Pick Jul 07/22, Up 1%) He sold down in January, but added over the summer. If the market wants to give us a sale, he takes the sale.
Rick StuchberryOwned
banks
COMMENT
The question was on banks. Recent reports from Canadian banks were mixed but they are good blue chip stocks. Royal Bank has room to go higher next year. The Bank of Nova Scotia has better growth due to their exposure to emerging and Latin American markets which should have a better outlook for the second half of 2023.
banks
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly This bell weather Canadian chartered bank is a TOP PICK. This is the gold standard of assets during periods of uncertainty. The bank has been building reserves to protect against possible loan losses as the economy has slowed. However, its operating margins are improving, which lead to recent earnings beating analyst expectations. It trades at 11x earnings and under 2x book value. It pays a good dividend, backed by a payout ratio under 45% of earnings. We recommend placing a stop loss at $110, looking to achieve $145 -- upside potential over 15%. Yield 4.1% (Analysts’ price target is $143.27)
banks
HOLD
Has a big capital markets operation, as well as strong Canadian wealth management business. Owns and likes this and TD. But he is pausing a few months to see how the consumer does in Q4.
Ryan BushellOwned
banks
PAST TOP PICK
(A Top Pick Jul 20/21, Up 8%) Good to hold in the unstable environment we're in. Diversified earnings profile. Well managed. Yield slightly less than others, a bit under 4%. He'd hold. Not his first choice to buy today. He tends to be a long-term holder of the banks, unless there's a compelling reason to sell.
Michael SprungOwned
banks
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