
TSE:RY
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.
Owns these two banks. BNS is Canadian and Latin America, where as RBC is Canada and US. Likes BNS's exposure to Latin America. Currently under covid, it is being more hurt. The stock is lagging here because of this. RBC is doing better due to Canada and US doing better. Over the long term, RBC is the stronger and better bank, but both are good choices.
It's regained its longtime premium valuation for good reason. It dominates in many areas including retail and trading. RY boasts an 18% ROE. That may last. Even at current prices, RY is well-positioned for economic recovery. It's more Canada-centric than most peers, though it does have international exposure. Pays a good 3.5% dividend yield. He foresees margin expansion among the Canadian banks, which are good at managing costs. A question is how many of their employees will come back. BNS is his second-favourite Canadian bank. (Analysts’ price target is $135.71)
RY vs. BMO He'd favour RY over BMO. BMO has a large franchise in the US midwest. RY is more active in the east and south. RY is better managed, and that's why it has a higher valuation. Won't go too far wrong owning it. Well positioned with their US footprint, as well as being the largest and most dominant player in Canada.