TSE:RY

Royal Bank (RY.TO)

291.48
-0.89 (0.30%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
1480 watching
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Investor Insights
star iconSep 7, 2026, 12:00 am

This summary was created by AI, based on 56 opinions in the last 12 months.

Royal Bank of Canada (RY) is viewed as a solid investment, characterized by its strong market position as the largest and top-performing bank in Canada. Analysts praise its balanced approach to growth and income, particularly highlighting the accelerated growth in capital markets and wealth management sectors. While many experts agree on its premium valuation relative to historical averages, they continue to express confidence in the bank's long-term prospects, backed by solid earnings and a consistent dividend record. Some experts have suggested a cautious approach, recommending trimming positions or taking profits due to high valuations, yet many maintain it as a core holding in their portfolios. The overall funding environment and regulatory moves are seen as conducive to future growth, despite the potential macroeconomic challenges ahead.

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Consensus
Hold
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Valuation
Overvalued
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TD,TD
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)
BUY
It has a great dividend yield. The risk on all these companies is that their loan loss book gets worse. They deferred a lot of payments on loans. It has a great retail franchise but they grew their investment banking side. He thinks you are fine owning it at these levels.
PAST TOP PICK
(A Top Pick Aug 13/19, Up 1%) Her favourite bank among the Canadians. Still holds it. RY was the most conservative in their loan loss provision last quarter. They have more cushion than their peers and their capital position is the strongest. She likes their asset and geographic mix; 30% comes from fee-based income that'll protect them as net interest margins continue to shrink. It pays a 4.5% dividend, which is safe. The payout ratio is 60% which is only slightly higher than their usual target. RY lags the market, but is reasonably valued. She's happy to own it.
BUY
RY vs. a US bank Banks are grappling with how bad mortgage defaults will be, and how much longer will Ottawa support the economy? All the banks have aggressively built their reserves against bad loans. Traditionally, Canada has more safeguards in place before than America to prevent mortgage defaults. But many are unemployed in Canada now. When wage support stops here, homeowners will have trouble paying their loans. But most Canadian banks are insured by CMHC (that's one safeguard). which will cover such defaults. Given all this, he doesn't feel that Canadian banks are overly exposed to mortgage defaults and doesn't feel the banks are dangerous to own now.
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