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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TD, TD
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%.
BUY
Canadian banks got beaten up--purely psychological and not based on data. This is not a bad time to buy these banks. RY is waking up a little later, getting more aggressive in its strategies.
HOLD
BNS-T is the only Canadian bank he owns. RY-T is mostly Canada and the US. Bond yields coming off and the flattening yield curve with some inversion has meant they have come off. Don't expect out-performance in the near term.
BUY
2018 earnings were up by 14%. ROE is at 18%. Premium customer base in Canada. Trading at a premium to the group. The credit cycle is aging. He models growth at 5.5% combined with a nice dividend. At some point investors are going to decide they want to buy.
TOP PICK

This bank has scale and they´ve been doing cost-cutting. They're spending millions in e-techonology to stay ahead. Capital markets, wealth management and insurance are doing well. They can beat this year's huge profit margin in 2019. (Analysts’ price target is $110.14)

PAST TOP PICK
(A Top Pick Sep 11/17, Up 8%) It pulled back recently. It is oversold again. It has been growing its earnings for 8+ years at 8% per year. It is still a buying opportunity.
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