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TSE:RY

Royal Bank (RY.TO)

290.60
-5.66 (1.91%)
as of Aug 19, 2026, 2:50:10 pm Market Open.
1478 watching
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Investor Insights
star iconAug 19, 2026, 12:00 am

This summary was created by AI, based on 57 opinions in the last 12 months.

Royal Bank of Canada (RY) stands out as a premier financial institution and is often regarded as the top choice among Canadian banks. Analysts praise its robust capital markets and wealth management divisions, which continue to thrive amidst a generally positive outlook for the Canadian economy. The bank's recent performance showcases substantial earnings growth, driven by favorable regulatory conditions and reduced loan loss provisions. However, a consensus emerges regarding the stock's high valuation relative to historical averages, prompting some experts to recommend caution in new investments. Despite these valuation concerns, many experts affirm RY's stability and strong dividend growth potential, indicating it remains a solid long-term hold for investors.

consensus icon
Consensus
Buy
valuation icon
Valuation
Overvalued
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Similar
BMO
TOP PICK
Bond due 2012 on subordinate debt giving it a higher yield. Probably Canada's premier bank. Spreads have gone from about 0.5% on a government of Canada bond up to 3.5% above.
DON'T BUY
Not in any rush to buy banks at this time. This one has a premium valuation. Reported decent numbers yesterday but he is a little suspect of the quality of these.
DON'T BUY
Concerned about the banking sector. This is the place with all the debt and we have way too much debt. Banks are issuing shares and diluting. Clouds have not cleared enough yet.
COMMENT
Not buying any banks right now. The only reason for caution here would be its US business. Not buying any banks right now.
BUY
(Caller has a 10 to 15 year time horizon.) With that time horizon, this is almost a no-brainer to Buy now but could go lower. Will have weak earnings through 2010 but doesn't think they will cut dividends. Expects loan losses for a few quarters.
PARTIAL BUY
Should start to see yield support in the $27-$28 area. Feels the dividend is secure. Wouldn't hesitate to start establishing positions.
TOP PICK
Has never seen yields on Canadian banks that are twice that yields on 10-year Canada bonds. 5 years from now, when the dividend has gone up 3 or 4 times, you will think you are very smart. 6.2% yield.
DON'T BUY
Doesn't like any financials. If there is that news on one of the big US banks, it could spill over into Canada.
WAIT
Heading into another reporting period for banks and he is a little wary of what might show up on those banks that have operations in the US. Expects to see loan-loss provisions going up but still banks are selling at compelling valuations. This would not be at the top of his list.
COMMENT
Feels all the Canadian banks are solid in respect to their dividends. He worries about the financials midterm. Thinks there will be a nice rally in them for the next couple of months but he has call options on all his banks right now at 15% of the money 30 to 60 days out.
BUY
If Canadian consumer starts to deteriorate, it will hurt retail banking. Canada is a very resource oriented country and their loan book will become more difficult. However, they have very good tier 1 ratios and he would buy at these levels.
BUY
The whole worldwide financials have taken a hit again. Canadian financials are definitely the best but they have been hit as well. Now at 7 or 8 times earnings, not much more than book value. Would buy under $30.
WAIT
A lot of Canadian bank issues relate to foreign banks that are in extreme distress. Fundamentally, Canadian banks are in better shape but are considered very expensive. Thinks earnings are going to come down a little in 2009 but feels they are extremely attractive right now.
HOLD
Hit a new low and hasn't been this low since 04. There have been some questions raised about a potential large loss on some US holdings. All the banks have been getting pounded on a day-to-day basis. If you own, hold until you get more details.
BUY
Canadian Banks: He is convinced that US and UK banks could have a lot more problems yet. There is also a risk that Canadian banks have not fessed up to everything and there could be more to come. Looking at current yields, even if the banks do nothing for 3 years in terms of price or earnings, you could happily buy and afford to wait.
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