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
TOP PICK

His favourite bank in Canada. The group has had a good stiff correction. It has the diversification. Capital markets are an issue for all the banks. This is an opportunity to get a good yield and growth. He does not think risks in the housing market will affect them. (Analysts’ target: $111.44).

TOP PICK

All of the banks showed a tremendous quarter last quarter with the exception of BMO-T. RY-T has increased their dividend. It has a dominant position in most of the areas it participates in. (Analysts’ target: $111.44).

PAST TOP PICK

(A Past Top Pick on May 16, 2017, Up 6.5%) Still likes it. Valuations for Canadian banks have all come bank after some richness, based on 10-year historical averages. See high earnings growth around 9% for RY. She considers Canadian banks as income stocks. With the current pullback, she sees double-digit total returns for this sector.

DON'T BUY

He wouldn't buy Canadian banks though they've defied gravity. If we see a housing slowdown, who knows? He may step in when this stock is more attractive. As for the fintech threats to this sector, RBC is already investigating fintech which is smart.

TOP PICK

Simply the largest company in Canada and the most dominate player in personal and commercial lending. Dividends have grown at over 6% annually over the past decade. Yield 3.9%. (Analysts’ price target is $111.53 )

PAST TOP PICK

(A Top Pick June 30/17 Up 9%). Compared to the rest of the Canadian market, he is happy with this performance. He does not want to see a break below the low in February as this may question the pro-growth theme he sees in the market.

BUY

It's her biggest holding among the Canadian banks. Fantastic numbers. Royal and Scotia are her favourite Canadian banks.

HOLD

He thinks it is the most expensive bank in North America, although it is the most profitable too. A good long term hold, but looking pricey compared to other banks. As mortgage rates go higher, it could be a signal for consumers to buy real estate, which would be a good bump to their earnings. He went into US banks instead.

COMMENT

Bank of Nova Scotia (BNS-T) or Royal Bank of Canada (RY-T)? He actually suggests a basket of banks. Maybe an ETF works here. If you have to prefer one name, he would pick TD Bank (TD-T)

BUY

Canadian Banks are great businesses. They are set up to win. It is always a good time to buy them. RBC specifically one of the largest banks and probably one of the best run Canadian banks. The number one driver is the Canadian economy.

BUY

RY has been moving up in a stair step formation. This correction is just part of the normal process for that type of long-term increase. After the TSX settles out from this correction, the TSX might rally well in the spring and a rally in the TSX will include the bank stocks. Their best season is into December, but they can continue to do well into the spring.

BUY

Long-term investors who have just held Canadian banks have made out like bandits. They’ve compounded rates of double digits and dividend growth, and he doesn't see that ending. Canadian banks should trade at more than 13X earnings. The overall market is trading at 19X earnings. He likes Canadian banks and feels you should overweight them in your portfolio.

PAST TOP PICK

(A Top Pick Dec 14/16. Up 17%.) She likes the banks as a group. They’ve started to pick up their price/share performance mid year. This has been one of the leaders in the group. Has about a 22% exposure in the US, which she likes. While the valuation is a little elevated versus historical averages, the earnings are coming through and are pretty stable. Their payout ratio is about 46% of earnings, and the targets are 40%-50%. They are going to continue to get that 7%-8% earnings growth.

TOP PICK

There is a short call on this one. Canada’s largest company and one of the largest banks in the world. It is the undisputed leader in wealth management. It is a leverage play on domestic banking. It has a 3.6% dividend that grows at 10% compounded. It should be a core part of any Canadian portfolio. (Analysts’ target: $108.00).

BUY

Canadian banks for the last 25 years have outperformed Berkshire Hathaway. Canadian banks have been no-brainers. Thinks you are going to get 8%-10% returns going forward from both a stock appreciation and dividends.

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