Royal Bank (RY.TO)

Owns shares in Canadian Dividend fund.
Cream of the crop in Canadian banks.
Trading at higher valuation.
Not concerned about interest rates (will charge higher fees if rates go up).
Strong franchise value.
Growing Canadian population will fuel business. 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

RY has been one of the fastest-growing Canadian banks, and it has survived several recessions in the past. Although there is the potential for a recession to arise as a result of high interest rates, we would be very comfortable with holding any of the large Canadian banks for the long-term. While there are concerns about a potential recession, a lot of these fears have been priced into the Canadian banks, as we have seen their valuations contract as a result of weakening capital markets and reduced lending. 

The large Canadian banks will generally grow with the economy and the capital markets. As the Canadian real estate market grows and consumers and businesses take on additional debt to fund real estate, property, investments, etc., the large banks will benefit and see their top and bottom lines grow. Most of the Canadian banks have also been expanding into other geographies, which has helped to stimulate growth. 
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Likes Canadian banks as a group, well capitalized. She favours TD and RY, with exposure to US growth. Attractive yields. She doesn't think we're going into a deep recession in Canada or the US.

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.

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.

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.

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.

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.

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.

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.

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.

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. 

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.