TSE:RY

Royal Bank (RY.TO)

283.09
-1.98 (0.69%)
as of Sep 29, 2026, 4:56:28 pm Market Open.
1480 watching
0
COMMENT
If you’re looking at 10 years you’ll do well here. If you are looking out at the next year and a half, he does not see a V shaped recovery in the financial sector or in the US economy.
BUY
His 2nd favourite bank. (Toronto Dominion (TD-T) is #1.) They didn't participate in a lot of the blow-up in the US. About 1.5X book value, which is historically cheap. Yield of 4.07%. Canadian banks now have the power of currency behind acquisition.
DON'T BUY
Reports this week and is looking at about 8% or 10% pullback below last year's 2nd quarter. This is the one that he worries little bit about because they've got pretty good US consumer exposure.
PAST TOP PICK
(A Top Pick July 31/07. Down 5%.) Still buying.
BUY
The strength in this bank is the tremendous domestic franchise. Their capital markets position is pre-eminent. Didn’t get into major trouble on this last cycle. Well managed.
TOP PICK
This is a bank that has not had a significant problem with the US housing and credit crunch. Will have less revenue from their securities arm as there is less underwriting going on. Fundamentally it is a very strong bank. Strong dividend and growing. Price/earnings multiple is down by 25%. Good yield of over 3% for conservative investors.
HOLD
With their US exposure, it is possible there are some assets they will have to write down. All the same, this bank has had a history of showing very strong ROE's in the past. Their strategy has been more North American than some of the other banks. Very well run operation.
SELL
(Market Call Minute.) Can do better in other banks.
HOLD
Very good dividend. One of the best banks. He likes the banks and thinks most of the bad news is out of them.
SELL
(Market Call Minute.) Multiple compression coming in the financials.
BUY
The banks are cheap. If you believe the earnings estimates that are out there, there is a lot of good upside in them.
HOLD
Pays a very good dividend. Very secure. Trading at its lowest valuation in many years. Earnings growth may be a bit on the slow side but certainly enough to pay the dividend.
DON'T BUY
Bank of Nova Scotia (BNS-T), Royal Bank (RY-T) and Toronto Dominion (TD-T) are probably the most expensive banks in North America and possibly even the European banks. The upside in his model price is in single digits. The most upside to his model prices are National Bank (NA-T), CIBC (CM-T) and Bank of Montreal (BMO-T).
HOLD
As a long-term investor, you stay with companies like this.
DON'T BUY
Blanket statement for Canadian banks, he doesn't own them. Earnings will be under pressure for sometime (2 years). We have a little reprieve here due to the FED action.
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