Royal Bank (RY.TO)

Chart is steady, cruising up. Not erratic at all. Don't sell this. One of the best Canadian banks.

They just had a great quarter. Can’t go wrong with the Canadian banks. Dividends are hiked every couple of quarters. They are legislative profit centres. Royal has industry leading franchises everywhere. They are dominant. Tough to find a good entry point because price is up there.

(Past Top Pick, July 21, 2017, Up 15%) Earnings today were quite encouraging. Good growth within wealth management. RY has re-established its premium multiple among its peers.

( A top pick June 6/18, up 4%) The banks were beaten up beginning of the year. This is a play into the fall. He has a 1 year target of $110.00 and if it reaches that, might want to consider taking profits.

Any of the big chartered banks are a good long-term investment. Royal is further down his list. Prefers TD and BNS, because they’ve been quicker to move offshore. One of largest asset management companies. Slow to adopt trends. Moving into ETFs solves one of those problems.

(A top pick August 16/17, up 13%) Have held for a long time. They like it and are buying it for new money. Housing market is a concern, but the mortgage market is manageable. Royal is very diversified, 23% or their revenues come from the US. This is one of their favourite banks.

Canadian and US banks have not done well this year. The problem is the flattening of the yield curve. Canadian banks are an oligopoly--they can print money. Seasonality is October. Wait.

If you have had it for 10 to 20 years then it is perpetual. As for share splits, they are almost meaningless now.

One of of three Canadian banks he owns and is long-dominated. It's at a premium valuation now and pays a slightly lower dividend, but this is a good investment long-term. It can withstand shocks to the markets which could happen in the next few years. He's certainly not selling any of his shares.

Canadian banks just reported an amazing quarter, but the stocks did nothing. Stocks go in and out of fashion, but their dividends are growing and they're buying back stock. Everyone is worried about a housing correction, but we may just
gotten out of it. He loves the Canadian banks.

The yield is 3.8% and the payout ratio is about 45%. The bank is solid, the dividend will be raised consistently. The bank’s volatility, running between $90 and $106 is normal. It has great stability, Financial stocks have been hit, globally, over the last month. He sees this as noise. He thinks the financials are oversold. (Analysts’ price target is $110.52)

Canada's largest bank and largest company and one of the largest banks it the world. It has a top ten global capital markets business. They are going to add 2 million Canadian customers with their advances in mobile and digital technology. (Analysts’ target: $110.52).

The Canadian banks have had some weakness, but RY has some good support levels and should do well going forward.

Their ROE is just not high enough to hit his radar. You could expect 8-12% annual returns on your investment. Biggest company in Canada. He expects it may split soon as it has broken above $100.

Get in now for a dividend investor? Can’t go too far wrong with Royal Bank. They favour US banks right now, not Canadian. US economy and housing doing better, whereas Canada has housing mortgage risks. Long-term steady dividend payer, as long as you take a long-term view, a good core name to own. May want to mix in some blue-chip US banks like JP Morgan or Citigroup.