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
WATCH
Has been the under performer of all the Cdn banks. Reporting very soon, so you’ll have to wait. If they disappoint viz. a viz. the other banks, it’s going to be ugly.
DON'T BUY
This is not one of the Canadian banks that he favours. Doesn’t like the US exposure which is becoming a big part of the bank and which they virtually earn no money but actually lose money. Would prefer National (NA-T) or Bank of Nova Scotia (BNS-T). If you want one with US exposure, Toronto Dominion (TD-T) would be a better one to own.
COMMENT
Reporting on March 3. Concerned about their US holdings so this bank is not at the top of his list. Think they will be OK. Not sure they will increase their dividends.
COMMENT
Annual meeting web cast on March 3rd. There are 3 things they have to deliver on. 1) Looks like they are exiting their US strategy where they have never made money. 2) Credit provisions. How much more is going to come back on to their favour. 3) What is their international strategy?
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.
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