TSE:RY

Royal Bank (RY.TO)

295.01
+1.34 (0.46%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
1479 watching
0
Investor Insights
star iconJul 25, 2026, 12:00 am

This summary was created by AI, based on 58 opinions in the last 12 months.

Royal Bank (RY-T) continues to be recognized as a leading institution in Canada, benefiting significantly from advancements in AI and a regulatory environment favorable to capital lending. Though the bank's stock price is currently perceived as high, especially with a valuation approaching 3x book value, its strong performance in capital markets and retail banking suggests ongoing resilience and growth potential. Experts highlight an optimistic outlook given the bank's ability to maintain low loan losses and robust earnings, with many reiterating it as a top pick. The consensus among analysts suggests a focus on the bank's dividend growth, strong return on equity, and strategic positioning, particularly following significant acquisitions that enhance its global capabilities.

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Consensus
Positive
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Valuation
Overvalued
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Similar
TD
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.
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.
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.
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.
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.
COMMENT
If inflation and rising interest rates leads to a steeper environment, then yes, it will be positive. If Feds make a policy mistake and the yield curve flattens, it will be negative. The steeper the yield curve, the more profitable it is for banks. In the back half of next year, there is a risk of economic slowdown.
BUY
Positioned well, including across the border. Dominant in wealth management in Canada. Valuation has come back to the group. High dividend yield. Likes the story.
HOLD
He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.
TOP PICK
Likes the whole Canadian banking sector, with net interest margins expanding. Interest rates in Canada may rise sooner than in US. Credit environment is favourable. Increasing dividends is on the menu, and she expects double digit increases, though it may not happen all at once. Diversified businesses. Yield is 3.26%. (Analysts’ price target is $143.82)
TOP PICK
Dominant personal and commercial banking in Canada, and a meaningful position in the US. Top 10 in the global capital markets business. Well diversified by line of business and geography. Leader in digital and AI, which is driving organic growth. Highly visible path to double digit total returns. Yield is 3.30%, growing at 7% a year. (Analysts’ price target is $143.22)
PAST TOP PICK
(A Top Pick Oct 14/20, Up 37%) She might sell if there was a drastic financial crisis or recession, but perhaps not even then. In 2008-9, it would have been the worst thing to sell the banks. She likes the banking sector. One of her core holdings in the Canadian banks. You can buy it here. Yield is under 4%, less than the others. Diversified. Dividend increases are coming when allowed.
BUY
Likes it. Exposure to Evergrande is not substantial. Even though economic growth cycle is bumpy, they're in the sweet spot of increasing dividends, buying back shares, lots of capital, perhaps doing acquisitions, stabilizing net interest income. Not an excessive multiple. Do well long term.
BUY
He watches small cap financials – see his Top Picks today. However amongst the group of large banks, this would seem to be his number one pick. It seems to be a little more efficient with its capital and is a leading franchise in virtually every business that they operate.
COMMENT

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.

TOP PICK

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)

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