TSE:RY

Royal Bank (RY.TO)

300.44
-0.26 (0.09%)
as of Aug 17, 2026, 6:55:08 pm Market Open.
1478 watching
0
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
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.
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.
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