TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1477 watching
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Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 55 opinions in the last 12 months.

Royal Bank (RY-T) has garnered a strong reputation among experts, with many emphasizing its leading position in the Canadian banking sector. Analysts have highlighted solid earnings growth, improved capital reserves, and strategic moves such as the acquisition of HSBC Canada that bolster its international presence. Despite the stock trading at a premium valuation, which some view as excessive, many experts consider it a dependable long-term investment, citing its consistent dividend increases and robust fundamentals. However, caution is advised due to high current valuations and concerns over a potential downturn in the broader banking sector. The consensus reflects a belief in the bank's resilience, although calls for profit-taking and a waiting strategy for better entry points have emerged as common themes.

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Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
PAST TOP PICK
(A Top Pick Apr 16/18, Up 16%) The Canadian banks have been recovering since December. RY-T is the dominant bank in the country. Overall, it has the scale to compete and has a good balance among its segments. He continues to recommend it.
TOP PICK
Their advantage is their scale for mass-market banking. They have been investing heavily in technology and new channels of distribution. A cautious holding to have. Yield 3.83% (Analysts’ price target is $109.26)
HOLD
Hold it. It's a winner. Don't sell and trigger taxable gains. It's not expensive and pays a good dividend.
PAST TOP PICK
(A Top Pick Apr 04/18, Up 11%) He's happy with it. It's close to its all-time high and its latest quarterly was quite impressive even with GDP growth slowing--RY's earnings frew 7%, the best in its class. That's all organic growth without acquisitions. They had strong capital markets unit performance and so is their U.S. unit.
COMMENT
A US hedge fund manager is shorting this stock. His premise is that credit losses will increase and she expect that this and next year. He's really making a call on the Canadian economy, but she doesn't see the Canadia economy to go into recession or our housing market to implode. Recent laws have cushioned the latter, like tougher laws to obtain a mortage. Housing prices in Canada really have to collapse to hit the banks. There's more cushion in Canada than America. She owns 12% Canadian banks in her portfolios.
TOP PICK
Good place for yield. Largest company in Canada. Not going to have a lot of significant grief holding this one. Almost need it to balance out the portfolio and keep the cash flow coming in if you have a tough year. Doesn't think there will be a housing collapse. Yield is 3.98%. (Analysts’ price target is $109.26)
BUY
It sold at a premium to its peers for many years, but now RY is trading in line with them. The big banks are a safe, long-term investment. Based on valuation, he prefers BNS, but RY is a dominant player that pays around a 4.5% yield.
TOP PICK
The Canadian banks' multiples have contracted and now look attractive. RY grew their earnings 17% last year and the stock is up only 1%. They had that weird Q4 quarter, but they saw decent loan growth. They increased their dividend 9% and grown their book value. Payout ratio is 45%. They can increase their dividend and earnings. (Analysts’ price target is $109.65)
BUY
Hang on to it. This should be one of the ones you buy and hold rather than monitor closely. This is one of the stronger banks in Canada. This one has the advantage of being in the more profitable areas of banking than the others.
HOLD
This is a long term hold. Don’t try to trade it. Don't go more than 5% of your portfolio in one stock. You will do well over the long term with this one.
TOP PICK
The biggest Canadian bank and among the top 10 in the world. Boasts the top wealth management business in Canada. Also in insurance and investor services. Well-diversified by business and geography including America. Pays a 4% yield and 7% dividend growth rate. He foresees double-digit returns. (Analysts’ price target is $109.56)
TOP PICK
Canadian Banks as a group offer value here. Estimated P/E is 11x. Lots of levers. Business mix is very good. Great customer base. All in he is modeling 5% EPS growth for a name attractively priced. (Analysts’ price target is $108.78)
HOLD
Canadian banks represent 30% of our index, so they're important. Royal is the bellwether for the group, with a good and high dividend. Thinks dividend will increase. Stable, well protected businesses. Banks typically double every 5-7 years, and nothing he can see to stop this. Yield is 3.87%.
PAST TOP PICK
(A Top Pick Oct 23/17, Down 2%) You are sitting on a nice yield while you are waiting. He likes it and thinks you could buy it in here.
HOLD
The banks didn't perform particularly well last year. Still, all the banks are well capitalized. Has a strong presence everywhere. With the banks, try to buy the best valuation at the time, and there are better options than Royal right now. Not his first choice, but if you own it, don't sell. It's a long-term investment that will pay off. Yield is 4%.
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