TSE:RY

Royal Bank (RY.TO)

285.07
-0.56 (0.20%)
as of Sep 28, 2026, 8:00:00 pm Market Open.
1480 watching
0
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.

BUY

TD-T vs. RY-T. TD-T is bigger than RY-T in the US. BNS-T is a bit cheaper. He is warming up to the sector in general.

TOP PICK
They have good growth opportunities and have made good acquisitions. It trades at only 11 times earnings and a good dividend yield. She expects earnings to grow by 7-8%. Yield 4.05% (Analysts’ price target is $110.31)
TOP PICK
One of the best brands in Canada and a low dividend payout ratio. If interest rates fall, it could be a very defensive stock to own. He likes their reinvestment abroad. Yield 3.91%. (Analysts’ price target is $110.75)
BUY

RY-T vs. BAC-N. They are both leaders in their respective countries. In a non-registered account, use RY-T. Also he would go with them because in the case of recession, they can lower their expenses. Their plan is to invest in IT when times are good and pull back investments when they are not. Going forward it will be who can tighten their belts the most, will do the best.

PAST TOP PICK
(A Top Pick Jun 28/18, Up 8%) For all the angst over banks and consumer leverage and housing they have grown earnings 6% YoY. they pay 4% dividend yield. They are the leader in Canada in personal and commercial and grew at mid-single digit pace. Very comfortable with this one still.
TOP PICK

Largest bank in Canada and largest company in Canada and one of the ten largest banks in the world. Well diversified. Core part of their portfolio. Well governed oligopoly. It operates the leading wealth management business in the country. They are leaders in digital and AI. Dividend yield is 4% and grows at a 7% clip a year. Very comfortable buying it now. (Analysts’ price target is $111.21)

PAST TOP PICK
(A Top Pick Jun 08/18, Up 8%) Half of the gain was from the dividend. They have posted earnings growth of 7% over the year. They are trading below historical multiples. About 23% of earnings come from the US. She thinks they will continue to increase the dividend.
PAST TOP PICK
(A Top Pick Jun 06/18, Up 8%) Banks have been a difficult sector to play. They can swing. Take money off the table.
BUY
What is a good entry point? - He owned it in the past. He likes it. The banks are a little less homogeneous than they used to be. They bought in the US a high end high net worth - Citi National. They beat in the quarter but it was a low quality beat as it was mainly from capital markets. Banks have lifted from the December lows but underperformed the market. Multiples are lows. The risk for reward is good. You can expect 10%.
PAST TOP PICK
(A Top Pick Apr 23/18, Up 14%) It is the best of the Canadian banks. We have not had any substantial, continued rises in rates. It has been difficult for them to do better. He has not sold any. He would still buy it.
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.
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