TSE:RY

Royal Bank (RY.TO)

300.26
-0.44 (0.15%)
as of Aug 17, 2026, 7:37:39 pm Market Open.
1478 watching
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Investor Insights
star iconAug 16, 2026, 12:00 am

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

Royal Bank (RY-T) is widely regarded as the top Canadian bank and has excelled in capital markets and wealth management. Recent reviews highlight its strategic decisions, such as the acquisition of HSBC, which position it well for future growth through cross-selling products. While the Canadian banking sector has performed strongly, the stock is trading at historical highs in terms of price-to-earnings ratios, prompting concerns about valuation among some analysts. The bank's dividend yield, while lower than 3%, has shown a consistent upward trend. Many experts see RY as a cornerstone holding in their portfolios due to its stable growth and ability to maintain capital during market uncertainties. Despite the current high valuations, RY continues to be recommended as a solid long-term investment, with potential for growth as market conditions evolve.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD, TD
COMMENT
A very well-run bank, trading at a reasonable valuation. He finds it a little rich. They haven’t made any real progress in two years. Wealth management business is under pressure of fee-compression. Mortgage growth in Canada has to slow down, and banks and government are in agreement. Loan portfolios will grow slower. It comes down to cost-efficiency and growth elsewhere in the world. He likes TD more or a US bank.
PAST TOP PICK
(A Top Pick Dec 04/18, Up 16%) There's a report RY will dip into cryptocurrencies. Well-managed and diverse businesses and geographies. Pays a growing dividend at 7%. Expect consistent low-double digit returns going forward.
HOLD
He owns this and has for quite some time. It is more sensitive to market moves as it has a large presence in the financial capital market space. So if you are bullish the market it will do better than the other Canadian banks.
COMMENT
Will they continue to outperform their peers? Every cycle sees the laggard become the leader and then vice versa. The Canadian banks are all about the same in long term returns. CM is the smaller of the Big 5 banks. RY has been consistently the largest bank, however. CM-T does have the highest current dividend yield.
BUY

His favorite Canadian bank is RY. However both RY and BMO are investing in technology, which should allow them to continue growing dividends. No problem buying BMO or RY here.

HOLD
He expects a little bump up in the dividend again. The Canadian banks have started to benefit again from a flood into value investing. They do well with technology development as well. A good hold.
STRONG BUY
He owns 3 Canadian banks including this. Look at their business mixes to decide which to buy. A diverse mix is good. RY is at a reasonable valuation now. They will likely be part of the Saudi Aramco distribution. Pays around a 3.9% yield. Great to buy in today's environment.
WEAK BUY

For the long term? Canadian banks are good to hold long-term. RY and TD are his picks in this sector, but it'll be a tougher environment with interest rates staying low in the coming years. He prefers Morgan Stanley because of its growth in wealth management. But banking overall will be tougher to make money for the next 5 years. But you own bank stocks for the dividend and will grow slowly in the coming decade.

BUY

Take profits now at $107? Canadian banks are a great space. RY pays nearly 4% and are well-capitalized. Great ROE. Low rates does pressure the banks, but RY has asset management and investment banking, too. Long-term, the banks enjoy a monopoly and will make money. True, there are bumpy periods like now. He also owns TD.

HOLD
It is highly diversified with capital markets and branching out into the US. They will keep raising the dividend and you can expect a high single-digit total return each year.
COMMENT

Canadian banks have gotten very cheap now. CIBC has a US presence but it’s mainly in Canada. RBC has more resources with a global presence. He thinks that banks are still a good place to be. Would be buying Royal Bank and TD.

PAST TOP PICK
(A Top Pick Sep 11/18, Up 5%) Share price flat. Bank stocks in general reflecting a slower economy. Last quarter, saw nice core growth in Canadian business. Increased dividend by about 3-4%. Investing in technology and infrastructure.
HOLD
Doesn't own any banks right now. Need to show loan growth. Yield curve makes it hard to make money. Dividend not at risk. No earnings growth. Some risk from over-indebted Canadian consumer. Valuations are cheap. Long-term, you can hold it for the yield. Corporate debt is one of the biggest landmines out there.
DON'T BUY
The only thing about the banks is they've been trapped in a range. Falling interest rates is not necessarily wonderful for bank profits. We're in the downswing in a trading range. Wouldn't be buying today.
COMMENT

Royal is a little more expensive than the other Canadian banks. The news of OSC charges on FX trading will create some headwinds -- requiring a fine to be paid. He owns TD instead right now as they have more exposure in the US.

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