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
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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
BUY
She likes Canadian banks and RY is one of three she owns. Yes, they've run up this year, but were weak last year. Loan growth will resume with the economic recovery. There's still earnings upside which will drive share price. Valuations remain reasonable. Ottawa will probably allow banks to raise dividends in the fall. She's been adding at $125/share. Share prices will reflect the Canadian economy.
BUY
He likes the Canadian banks. Still going to perform well. It outperforms the TSX 4/5 years but didn't last year, so odds on that it will this year. Net interest margin pressure in the rear view mirror. Credit loss cycle more benign than feared. Top 10 global leader in capital markets. Great wealth management. OFSI likely to take handcuffs off the banks, leading to aggressive dividend increases and share buybacks. Good things ahead.
BUY

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.

HOLD
Another favourite of his. Tax-preferred dividends, even though it's on a global scale. Quality is well understood by the markets. Not sure if dividend hikes are imminent. His concern is that they overreach in capital markets, and get away from the crown jewels of the Canadian banking brands. Own, put it away, and don't think about it.
TOP PICK
25% of business comes from the US, where capital market activity is quite robust. Stock price has moved, but more to come as the Canadian and US economies open up. Still trades at a reasonable multiple. Eventually dividends and share buybacks will resume. Unused loan reserves strengthen its capital base. Yield is 3.68%. (Analysts’ price target is $123.06)
PAST TOP PICK
(A Top Pick Apr 09/20, Up 38%) He would buy it again. It is a corner stone of his portfolio. They have a dominant position and are well capitalized. They will have relatively easy comparisons this year because they took big credit losses last year. You can buy it any day.
BUY

Canadian banks as a group are attractive right now. The entire space should fare well. US banks valuations have come up, whereas Canadian ones are still undervalued. He also likes RY and TD.

PAST TOP PICK

(A Top Pick Mar 17/20, Up 34%) He prefers banks with a lower PE and pays a higher dividend, like Commerce and BNS. He still likes RY and will hold it long term. Well-managed with a great franchise.

PAST TOP PICK
(A Top Pick Feb 06/20, Up 7%) Over-reserved, and so they're in good shape. Yield curve is steepening. Really good growth in trading and banking. Great asset management business and retail franchise. Canada's strong regulatory environment helps stabilize our banks. Not expensive, great dividend yield.
BUY
One of the top banks they own. It has done well and there is a reason the broader banking sector is doing well. Would not exit to take profits. As the economy reopens, they could start releasing provisions. They have excess capital and they cannot raise dividends or buy back stocks right now due to regulation. Once it is lifted, the stock should move.
PAST TOP PICK
(A Top Pick Feb 03/20, Up 5%) A long-time core holding. Continues to like it.
TOP PICK
One of the 10 largest banks in the world, largest in Canada. Well diversified in business and geography. Innovator. Leader in digital and AI. Using scale to increase its competitive moat. Goal to attract 2.5 million new clients. Dividend tends to grow 7-8-9% a year, and this will continue once OSFI takes the handcuffs off. So well on their way to a return to double digit returns. Yield is 4.10%. (Analysts’ price target is $114.72)
BUY
A safe dividend payer for a TFSA? A Canadian bank like RY. Has a good balance sheet that will absorb loan losses.
PAST TOP PICK
(A Top Pick Jan 14/20, Up 8%) She continues to like it. She likes them as a group and thinks their earnings will improve this year. The situation was not as dire as the situation was when they made their reserves last year. This puts them in a god position in terms of provisioning. Canadian banks can't increase dividends or buy back stocks until COVID is over, by regulation, so they are building a lot of capital.
HOLD
Likes it and owns it. All Canadian banks are good quality with good dividend growth.
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