TSE:RY

Royal Bank (RY.TO)

290.00
+2.44 (0.85%)
as of Nov 11, 2026, 9:00:00 pm Market Closed.
1478 watching
0
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%.
PAST TOP PICK
(Top Pick Mar 3/11, Down 7.73%) Continues to like it. Thought they were going to address some of the problem in the US, which they did and should benefit going forward.
DON'T BUY
Not his favourite. Lost a little of their old panache. None of the banks have given much in the way of performance. Yields are okay, but are not spectacular. Banking business is tough right now. Spreads are terrible.
BUY
A lot of the concern that was expressed was well overdone. He is not concerned about any of the chartered banks. Has the largest dividend in Canada and is a pretty well run bank. He considers banks core stocks. They suffered from what has been happening south of the border but they were not affected. It’s a good sign that people are coming back in to the banks.
PAST TOP PICK
(Top Pick Jan 19/11, Up 1.28%)
BUY
Core holding. Has had a descent run. 50% of business is retail and you can only cut costs to increase profits. He is comfortable with it vs. insurance companies.
PAST TOP PICK
(A Top Pick Dec 20/10. Up 8.41%.) Still likes.
DON'T BUY
Why has it taken off so suddenly and what do you think will happen if European financials go down the drain? His model price is $50.28 giving it a negative of 4%-5%. People in US and Canada are looking for yield now so all banks will have some sort of lift because of that. Regarding Europe, we have already seen the results.
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