Royal Bank (RY.TO)

It has the lowest yield of the bank stocks. They are not all that differentiable for the long term. He is just not that enthralled at these levels of yield. He is not going to chase it at these prices.

He just picked this up for one of his funds. When banks sell off more than 10%, as the Candian ones have over the past year, he pays attention. There's been talk of a housing slowdown, which of course effects banks, since credit could slow down. He likes RY among the Canadian banks, because RY has U.S. exposure, and is doing a lot in technology. Safe to hold.

He generally favors US banks over Canadian. As a long-term investments, well-run Canadian banks are attractive. There is concern about competition from companies like Amazon. The American banks are benefitting from raises in interest rates that he expects to be more rapid than Canada, and the housing recovery is stronger there because housing prices are already high here. So he prefers a Citigroup or a JP Morgan to Royal. However, he doesn’t think an investor would go too far wrong with Royal because it is fairly safe and it has a high dividend.

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).

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).

(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.

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.

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 )

(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.

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

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.

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)

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.

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.

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.