TSE:RY

Royal Bank (RY.TO)

283.04
-2.03 (0.71%)
as of Sep 29, 2026, 5:02:39 pm Market Open.
1480 watching
0
BUY
Good entry point. They are probably the leaders in moving over to the wealth business. It is the cheapest of the bunch.
PAST TOP PICK
(A Top Pick Oct 25/10. Down 13.28%.) Expanded into Europe and the US but it hasn't paid off yet. Expect it will but it takes time.
BUY ON WEAKNESS
The market is getting close. First time he has not owned them. Would buy at $45. Dividend is pretty damned attractive. Likes TD and BNS as well.
TOP PICK
(A Top Pick Oct 20/10. Down 8.4%.) The dominant franchise in Canada. Because of US problems, they're selling at a discount rather than the premium they used to get. Management is taking steps to address their US problems. There will be expansion in their wealth management along with a more aggressive posture in their other areas. Good yield of almost 4.7%.
BUY
Large position in his portfolio but his favourite is TD. Issues delivering earnings growth. Over next 3 years thinks they will eventually get out of the issues. It is third in his list. Their brand is improving.
BUY
Over the long term, this is a great company. Canadian banks have proven to be very resilient relative to global banks. Near-term, Cdn banks will be challenged by a flattening yield curve, making it harder for them to earn a high net interest margin. Good for the long-term.
BUY
Can look at this as a core quality holding. Good dividend. Solid business franchise. Exited the US. Growing global wealth management through some good acquisitions.
WAIT
A main pick. Likes because of stability of retail network. Can grow by acquisitions. A great margin business. He wants to see the growth strategy. TD has grown rates of return through the US. Wonders what their strategy is outside of Canada. Prefers TD.
BUY
Normal seasonal strength is from October until December and then another one in the spring. This bank tends to reach a very important low around this time of year. There are some early signs of support. Momentum indicators have just started to turn positive for this bank.
BUY
Has not done well in Canada, but has behaved very well compared to global banks. In a position where it can buy assets when they come out of Dexia. For a long-term investor, with their high yield, it gives you twice the level you get on a government bond along with the dividend tax credit.
BUY
His 2 favourite banks are this one and TD (TD-T). Looking at the consensus target price and the consensus target return, you've got 24%-25% growth over the year. Cheap. At the bottom of the Bollinger band line.
DON'T BUY
The banks have all had negative reports. Chart shows a double top in 2010-2011. Broke major support at around $50. A falling knife.
BUY ON WEAKNESS
Terrific name for the longer term. They are one of the more levered names to wholesale business. Net interest margins for banks continue to come down, which is a headwind. One wonders if their growth might start to slow if Canadian balance sheets start to get stretched and we get to the top of our real estate curve.
TOP PICK
(A Top Pick Sept 22/10. Down 15.08%.) You want to get banks, particularly those in Canada, when they are mis-priced relative to the rest of the group. This bank has had its share of problems recently. Sold off their US retail operations. For years and years, it has commanded a premium multiple. Good reward in 5 years.
WAIT
One of the first times in his career when he was not an owner of Canadian banks. Canadian housing market is poised to soften at some point. He sees some downside in the banks. Dividends are secure but he thinks they have more to fall. If another 10% dip he would be buying. Fantastic franchise.
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