TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
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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 been a strong performer, with a consensus appreciation for its stability, especially in its capital markets and wealth management divisions. Experts praise the bank's robust earnings, dividends that have grown consistently, and its strategic acquisition of HSBC Canada, which is expected to enhance its global platform. However, there are concerns regarding its current high valuation relative to historical standards and the overall Canadian banking sector, leading some to suggest trimming positions. While many maintain a positive outlook on RY due to its dominance and management quality, the general sentiment reflects caution against buying at elevated prices with potential headwinds from slowing loan growth and economic pressures.

consensus icon
Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
PAST TOP PICK
(A Top Pick Jan 19/11. Up 0.55%.) Still likes.
SELL
Banks have had an incredible return to form after the recession. He would be thinking what his sell target is. They pay a good dividend. Only banks in the US interest him now.
HOLD
Has under performed the other banks. Used to be the premium bank with great franchises and it's big size. Has some issues with the US banking and has spent a lot of money buying wealth management companies. Market is unsure about their strategy.
SELL
At its peak was at the valuation high that it has been at for the last 60 years. When this happens with companies, he is inclined to Sell and let them go.
BUY
Has probably been beaten up the most out of all the banks. Got a pretty good price for selling their US division. Expect they will reinvest this in their Canadian operations and are generating gobs of cash in Canada. $60 a year from now.
COMMENT
Toronto Dominion (TD-T) versus Royal Bank (RY-T) for a long-term hold and dividend yield? TD has been building a strong retail franchise and is his favourite. There consumer loan book has been growing. Likes their acquisition of Chrysler Financial. Royal has had way too much leverage/exposure to trading revenue.
DON'T BUY
Cnd banks are under pressure because of rising consumer debt levels and the probability of slow loan growth. Hitting this bank a little harder than others that might have international exposure. Basically closed down their US operations and retreated back into the Canadian marketplace.
BUY
Likes it. From a risk point of view, they have committed themselves to being a retail Canadian bank (because they sold there US asset), an asset manager and an investment bank. Volatility is from the investment banking side. Question is can they grow that business to a size where it makes a difference on the bottom line. Retail franchise is very strong. Selling US asset was a good thing, but where they invest the money is a question.
TOP PICK
Banks have all started increasing dividends, which is positive. Have always traded at a premium to the group because of their higher ROE but their valuation now is more in line with the group. Decided to get out of the retail and got a relatively good price for it.
TOP PICK
Selling off their US retail operations, which is a great move. Going forward, this allows them to refocus on what their effort in the US is going to be. Will probably be in more profitable areas like wealth management and capital, which is what they excel in.
BUY
To him, all of the banks are a gift. Dividend yield with most of the banks is higher than 5-year government bonds and they’ll probably continue to raise them.
HOLD
Banks are economy stocks so he is looking for a bit slower growth over the next 4 to 6 months. His top pick would be Bank of Nova Scotia (BNS-T), TD (TD-T) second and Royal would be third.
BUY
Royal bank (RY-T) or Toronto Dominion (TD-T)? Likes TD better because of the strong consumer brand both in Canada and US. Royal has a lot more capital markets’ revenues and profitability so there is more lumpiness. Both of them are still excellent stocks.
COMMENT
Should caller trim at this price? Stock has traded from $52 to $60 so you may want to trim. If you are a nimble trader, it makes some sense. Expects they will increase their dividend on May 27. 3.3% dividend.
BUY
Thinks they will raise their dividend this year and next. Thinks earnings are going to be good. There’s no bad news out there for the banks. Favorite is NA and also owns BNS.
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