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
TOP PICK
Fantastic compounder. 7th largest bank in the world. Formidable grower, both domestically and overseas. Big capital markets franchise. Dominant wealth and asset management franchise in Canada. Dividend has grown around 8% compound pace over a decade. Digital sophistication. Buy today comfortably. Yield is 4.16%. (Analysts’ price target is $144.04)
Brian MaddenOwned
banks
TOP PICK
Biggest, diversified, capital markets. Well managed. Asset management, which increasingly is the steady-eddy of cashflow. Could go back to its highs without difficulty. Yield is 4.02%. (Analysts’ price target is $144.02)
Rick StuchberryOwned
banks
BUY ON WEAKNESS
Core holding, though sometimes you want more or less exposure. In an economic slowdown, as he expects this year, you want to pare back. He owns RY, TD, BMO, and BAM.A. Each has unique aspects that make for good diversification within the sector. Pullbacks provide an opportune chance to buy, put them away, and collect some income. Strong, sustainable, competitive advantages. Strong compounders over time.
Brian MaddenOwned
banks
TOP PICK
Pays a 4% yield and banks are attractive for income. Banks are good for long term. They bought a small wealth management business from the UK. They raised their dividend 7% last quarter. They still have reserves they've built over time. There is talk of rising rates pressuring the housing market, but there remains a housing shortage in Canada and immigration flow into Canada will also fuel housing demand. So, the banks are well-positioned. Oil and base metals are thriving this year and are another tailwind for the Canadian ecnomy and banks (Analysts’ price target is $144.02)
Christine PooleOwned
banks
PAST TOP PICK
(A Top Pick Apr 15/21, Up 19%) Likes the scale and diversity across its different businesses. One of her favourite banks. Nice core holding for income.
Christine PooleOwned
banks
BUY ON WEAKNESS
RY vs. BNS Broadly, Canadian banks are all driven by the consumer and mortgage market. RY is the premier name in Canada, he owns it at full weight, no plans to sell, not buying for new clients until there's a pullback. Canadian franchise is solid, great capital markets business, good long-term. Forays into US appear solid. One of the lower dividend yields in the space. BNS has one of the highest yields, more focused in Latin America, recent Chilean acquisition still TBD. He owns a small position. His other preference is TD. He's not adding to any of the banks, waiting to see how market digests rate increases and hoping for a market pullback.
Ryan BushellOwned
banks
BUY
Canadian banks exposure to Russian financial system is low.
Company is well positioned for rising interest rates.
One of his largest holdings.
Pays an attractive dividend yield.
Good investment opportunity,
Michael SprungOwned
banks
BUY
Canadian banking in general is good for the long term. Great businesses. One of the best retail franchises in Canada. Large investment banking division that's probably in the top 10 of global investment banks, which adds volatility to earnings. Big spend on asset management globally. At 1.9x earnings, more expensive than the others. He's buying it here. Yield is 3.4%.
Paul Harris, CFAOwned
banks
WEAK BUY
He prefers TD and NA. Banks are flip-flopping right now, based on interest rates and uncertainties about the global banking system. Terrific performance this year. Well run. Lots of capital, so he expects more share buybacks, dividend hikes, and surprise acquisitions.
Barry SchwartzOwned
banks
HOLD
Really likes, but not buying right now as bank valuations have come up significantly. Be patient. The group trades about 12x earnings, which is reasonable. Great income stock. Don't sell if you own it. Reasonable growth profile. Releasing excess capital and buying back shares.
Chris BlumasOwned
banks
BUY
She likes Canadian banks. PEs have climbed from last year, but still reasonable. Royal and TD are her top banks. Likes RY for their diversity and scale. Both banks yield around 3.5% and will continue to raise them as earnings grow.
Christine PooleOwned
banks
BUY
Rising interest rates will improve net interest margins (spread between mortgages issued and deposits taken).
Dividend increases have occurred across the industry.
Well diversified business that has operations in USA + globally.
Avoid buying too many banking stocks as exposes investor to sector risk.
banks
HOLD
Canadian banking sector has been a great place to be, oligopoly. "Hates" being a customer, but loves being an owner. All in excellent shape. The sector has been a core holding in his Canadian strategy.
Lorne SteinbergOwned
banks
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