TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 26, 2026, 12:00 am

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.

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Consensus
Hold
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Valuation
Overvalued
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Similar
BMO
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.
PAST TOP PICK
(A Top Pick Dec 16/19, Up 3%) It had a pretty bad year this year but then had a rally in November on news of a vaccine. They appear to be under earning. For the ROE to get back to its normalized level, earnings have to go up 18%. He considers it a buy.
BUY

Tough year for the banks. Q4 will be released in a few weeks, and you never know what you're going to get. Brighter days are ahead, and the market's already figured that out. BMO is not his favourite. Prefers National, TD, Royal. You'll do fine with the Canadian banks. Some concerns around fintech. Low interest rates will be a problem, but offset by recovering economy. Good time to add for dividend seekers.

BUY
Dividend is safe. All banks are under pressure with their net interest margin. Best wealth management franchise in Canada, and it should continue to grow. Great capital markets business that's a top 10 in the world. Well balanced geographically. Expect close to double-digit returns most years. Buy comfortably today.
HOLD
When you invest in the banking sector, you want to see organic growth in terms of loans. On capital market side, you want to see good and solid profitability. In this environment, the capital market side has done well. Organic loans have not done so well. Overall, Canadian banks are doing well on loan provisions. Sector is a hold right now. If you had to choose one, Royal Bank would be the one.
TOP PICK
Large, diversified. Fee-based business is less sensitive to shrinking net interest margin. Conservative provisions for loan losses. Payout ratio is about 56%, and will lessen next year. Attractive valuation. Earnings will grow again next year, giving you nice capital appreciation and dividend yield. Yield is 4.45%. (Analysts’ price target is $106.39)
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