TSE:RY

Royal Bank (RY.TO)

270.60
-0.34 (0.13%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1475 watching
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Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

The Royal Bank (RY) of Canada is widely regarded as one of the leading financial institutions in Canada and consistently receives high praise for its diversified business model and strong capital markets presence. Experts highlight its recent performance, rising earnings, and prudent management, although there is acknowledgment of a premium valuation compared to its peers. There are differing views on whether the bank is fully valued or still has upside potential due to its robust cash flow and strategic acquisitions, such as HSBC Canada. Nevertheless, some analysts caution about the overall banking sector dynamics, suggesting potential headwinds from interest rate pressures and economic uncertainties. Overall, RY is frequently labeled as a solid long-term hold for investors seeking stability and dividends.

consensus icon
Consensus
Buy
valuation icon
Valuation
Overvalued
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Similar
TD
HOLD
Perpetuals that are approaching the purchase price. If rates continue to go up so that yields fall, should they sell? He feels they won't get called. Nice yield that should run for a very long time.
PAST TOP PICK
(A Top Pick Aug 28/09. Up 8.27%.) 6.1% Series AX Bond yielding 5.5%.
TOP PICK
Down from $62-$63 because of negative earnings surprises in the last 2 quarters primarily on their capital market side through acquisition in US and Europe. Has potential to move back up.
SELL
Has not done as well as other banks. Broke below the 200 day moving average and the 200 day moving average turned down, a unique thing among the banks. Wouldn't stay with this one for now.
COMMENT
“In the money” covered calls versus “out of the money” covered calls? On “out of the money” he first all takes a look at X dividend date to see how much dividend he will collect. Looks to pick up 6%-8% over 6 to 8 months. Normally goes out 6 months. Rarely uses “in the money”.
STRONG BUY
His 3rd favourite Canadian bank after National (NA-T) and Bank of Nova Scotia (BNS-T). Looks quite attractive. Good results in retail, commercial and lending. Expects earnings will increase from here. Cheapest of the big 5. Has a $65 target and a dividend increase. 3.8% yield.
COMMENT
2 concerns. They are most highly levered to capital markets but he can live with that. His biggest concern is that they're losing money on their US retail side. This needs some fixing. (See Top Picks.)
TOP PICK
Likes their core business and have owned them for years. Buying below $49. Loan loss provisions are coming down and the key banking part is good.
PAST TOP PICK
(A Top Pick Dec 3/09. Down 8%.) Got this one wrong but still likes. Good dividend.
BUY
(Market Call Minute.) Good time to buy this one. Great company.
TOP PICK
Has under performed and is the only one that is down year to date. Good last year. The stock was over bought when it got up and has now corrected. Is trading in line with the group instead of at a premium, which it used to.
BUY
Because he is fairly positive on the outlook for the market, financials have to move with the rise. He doesn't see them doing a lot but he doesn't see them going down either. There is a lot of support around its current price. 3.9% dividend.
DON'T BUY
Financial services indexes on a monthly basis are 2nd from the bottom so the action has not been in financials. The environment of lowering of yields compresses financials so much that the banks really have no place to make money.
DON'T BUY
Question about what if there is 2 bad quarters. He says problem is people’s short term thinking. He doesn’t like Canadian banks at this price though.
COMMENT
Experienced volatile earnings since 2006. Net interest margins peaked in 2008 because of a lack of global growth. With decreased trading revenues, M&A activity and housing environment, he sees limited growth going forward. Can see more interest from foreign investors in Canadian banks. He is not neutral on this one. For dividend investors only.
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