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
HOLD
(Market Call Minute.) One of the favourites of analysts. Has had a huge move off the bottom. Has a premium to other banks and not sure it deserves it.
TOP PICK
6.821% June 30, 2018 bonds yielding about 8% to maturity. Thinks this is the best bank. Good yield. He will probably hold until maturity.
COMMENT
Preferreds. Thinks interest rates will continue to stay reasonably low. He would take the older preferreds rather than the more recent issues. Yield of about 6% is pretty attractive.
COMMENT
Over 5% dividend. Banks have to now focus on traditional banking business, borrowing and lending spreads. He is not positive on the growth prospects for wholesale banking and the wealth management businesses. He suggests writing a Call option around $40.
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.
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