TSE:RY

Royal Bank (RY.TO)

283.28
-1.79 (0.63%)
as of Sep 29, 2026, 8:00:00 pm Market Open.
1480 watching
0
BUY
IT had been a bit of a dog. Very well valued. Descent dividend yield. His favourite is TD.
DON'T BUY
Doesn’t see much upside. The model price is $57.87, a 2% positive differential. Might get up to $58 by year-end but can’t see much else.
BUY
2 major things to fix. 1) The most exposed to capital markets so they will rebound there. 2) Fix their US retail banking. Thinks they will partly fix the latter this year, which will make earnings higher and will restore their multiples.
COMMENT
Good as a long term hold. His favourite Canadian Bank is Canadian Western Bank (CWB-T).
DON'T BUY
On a technical call, he is wary of both Bank of Montreal (BMO-T) and Royal (RY-T), the Royal in particular. This one hit a 62 year valuation high last year. Not particularly cheap.
DON'T BUY
The capital markets business has been sub-par. RY is a capital markets business. They have become one of the big global players. For this reason there is a drag on the stock. Prefers BNS or TD. Expects dividend growth going forward will be somewhat muted.
SELL
Largest chartered bank in Canada and management is quite good. However haven’t covered themselves with glory in the last year so is not as enthused anymore. Spending too much time making money out of their trading operations. If you own consider switching to Bank of Nova Scotia (BNS-T) or TD (TD-T).
TOP PICK
Canada’s largest bank. Using its currency and relative strength for acquisitions. \Canadian banks have a 2 or 3 year window to take advantage of how well they are regarded. Expect to see a big resumption in dividend grow the in the next 2–3 years.
COMMENT
In his mind this would be in the middle of the pack of large blue chip financials. You get a good solid dividend and a stock that will probably grow at 10%-11% a year. US operations are kind of sluggish. On his list National Bank (NA-T) is the best one.
DON'T BUY
Doesn’t like banks, as they have no earnings growth. Earnings are actually de-accelerating and there is so much acceleration in everything else. (He holds zero financials.)
BUY
A long-term hold at these prices. Expecting dividend increases in the 1st half of the year but this is probably largely built into the stock price. His favourite is Toronto Dominion (TD-T), which currently has the best earnings multiple but this one is his 2nd biggest position.
HOLD
Thinks banks will stay where they are. They are vital blue chips. Trying to absorb their recently obtained US operations. All the banks are boringly the same.
TOP PICK
Owned for years. Always owned some of it. Worst performing bank of big 5 in 2010. It is usually either first or second. US retail is still losing money while TD is making money in US. They will absolutely get it much better. There is a $10 gap in valuation to make up and all they have to do is half of it to get 17% return.
DON'T BUY
The banks are very much the same so if one under performs then it usually comes back. Good for the long term but thinks they will take a while to turn around.
DON'T BUY
Doesn’t own any Canadian banks that have too much US exposure. Great Canadian franchise but hasn’t made any money in the US.
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