TSE:RY

Royal Bank (RY.TO)

270.60
-0.34 (0.13%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1475 watching
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Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

Royal Bank (RY) has been reviewed positively by multiple financial experts, highlighting its stable performance and strong management. It has shown substantial growth, with a commendable increase in both profit margin and market position, benefiting from a robust capital markets business and the successful acquisition of HSBC Canada. However, some experts express caution, pointing out that RY is trading at high valuation metrics, with premium multiples that may lead to a restrictive growth outlook. A consensus emerges that while RY maintains its status as a leading Canadian bank with solid fundamentals, the valuation may limit near-term upside. Many analysts recommend holding the stock due to potential for steady dividends and modest growth in the longer term, suggesting RY is a core holding yet requiring vigilance concerning market fluctuations.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD,TD
BUY
(Market Call Minute.)
DON'T BUY
Fairly staid bank and have corrected nicely. Pays around 4% dividend. Conservative play and not a bad place to be but he would wait before getting in.
HOLD
He likes this bank the best. Has one of the better franchises. Good growth opportunities going forward. 4% dividend looks very well covered and there are opportunities for it to go up.
COMMENT
Preferred Series T maturing in Aug/14? These are a part of the new rate reset preferred shares that came out during the 2008-2009 crises. This one has a 6.25% dividend yield and is trading at a premium. The yield to reset is only around 3%.
WEAK BUY
Has had a healthy recovery from where it was and has come back to being a good performer. He feels Canadian banks are expensive at this time. He’d rather own US banks where the upside potential is better.
TOP PICK
Pretty good valuation. Likes the banks as a group. Royal is the one that can grow the most from a normalizing world. Their wholesale earnings had improved a great deal and hopefully it will repeat going forward. Recent acquisition will be accretive and they got it a really good price.
COMMENT
Preferred Series T bonds maturing Aug/14? They don't actually mature on that date. This is actually a reset date. At that date, they have the right to Call them or reset the dividend at a spread over Canada's. With recent changes in bank regulations, he expects they will be called on that date. Trading at a premium. This will disappear over time. He likes them.
HOLD
Buy at around $53-$54 and selling at $57. Good strategy? The Buy price is reasonable but he is not strong on the strategy. A little nervous of banks generally because if you get European problems developing over the summer, it will affect Canadian banks.
BUY ON WEAKNESS
Generally speaking she likes the banks and RY has dipped and that has been a function of the overall market. Increased its dividend last quarter along with some other banks so it is not at risk. If market pulls back a bit it could be a good time to put some more into a portfolio.
PAST TOP PICK
(Top Pick Mar 3/11, Up 2.05%) One of his favourite banks. One of 3 that he owns with good positions. They took steps to fix a lot of problems with their retail area in the US and that is done. Thinks earnings will approach $5 in the next couple of years. 3.9% dividend yield. Valuation is fair.
PAST TOP PICK
(Top Pick Mar 21/11, Up 0.50%) Still likes banks because they are oligopolies. Dividend comes out of the retail side of business. Expect dividend increases of 5-6% per year so you aren’t going to make a lot of money from them but are core positions for him.
BUY
He thinks there is probably a lot of upside on the banks here. There is reasonable earnings growth. There is probably good dividend growth. RY had a great turnaround on wholesale and retail numbers. You could buy it right here.
WEAK BUY
The lesson is to buy banks in the penalty box. It is a hold for them and is their third favourite. It is more expensive here than he would like. Nothing wrong with it.
BUY
Canadian Banks: Have all just finished reporting, few increasing in dividends that were unexpected. 8-10% upside potential plus dividends. Would prefer banks to pipelines or telecoms. RY in particular is a bank they like. BMO, TD also held.
COMMENT
(Market Call Minute.) At these price levels, all the banks are starting to look pretty rich. Dividend yields are not bad but don't expect to see tremendous earnings growth or dividend growth above 4%-5%.
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