Royal Bank (RY.TO)

Wonderfully run. A great chart. They did a large acquisition when its peers were tied up. Banks in general have been beaten up, so RY's PE is a reasonable 12x PE. Likes it a lot.

RY is a bit pricey right now. 

If he could own only one, this would be it. Better managed, better strategy, more on point. See his Top Picks.

Best in show and firing on all cylinders. Capital markets really grew; all their businesses are growing. Loves that they bought HSBC, a great way to grow.

It's done well the past year, and taken away leadership from TD. You can take some profits, but longer term the Canadian banks do well, though they are in a holding pattern now.

As markets make new highs - banking is beginning to catch up. Running room for the business. Believes interest rates will remain high - good time to own Canadian banks. Excellent wealth management business as well. Would recommend buying. Very strong brand. 

Likes it. Canadian banks have dramatically underperformed over the last couple of years. Yet dividends are rock solid. All are in incredibly strong shape due to tight regulations. It's only a matter of time before attention comes back to Canada and takes advantage of banks. 

Despite low productivity, we're a growth country because of immigration. Value to be had.

Strong business - bear oligopoly of sector in Canada. Leading bank in Canada. Continues to own shares in business. Would recommend for the long term investors. Strong balance sheet and profit margins. Management team continues to perform well. 

More for the dividend and some small growth. For new money, probably better to add as a lump sum, rather than dollar cost averaging. This way, you get your dividend sooner.

Always one of her top holdings. In general, Canadian banking sector is a sound, long-term investment. Diversified geographically and operationally. HSBC acquisition is very attractive, synergies, opens door to international expansion and cross-selling.

Currently selling at premium to other banks in the market, but valuation is justified. RBC offers stability for investors in case markets fall. Very strong balance sheet and steady stream of earnings. Dividend ~4% is safe and reliable. Compliance issues behind company. Recent closing of HSBC Canada will generate profits going forward. Offers good value for long term investors. 

If you're going to buy in the space, BMO and RY are the two to consider. Accretion from acquisitions is working for both. BMO is 2 points cheaper. Still, he'd rather go with insurance -- MFC first, IFC second.

Banks are good to own for the long term. They did reduce their holdings 1 1/2 years ago. He wants to see how the digestion of its mortgage business runs through the financial system. Banks are getting the benefit of higher interest rates but the bulk of refinancing mortgages at higher rates is still to come over the next one to 1 1/2 years. He wouldn't add at this time.

Both are the right ones to look at. Slight preference at the moment is towards TD on valuation. Bit more negative sentiment on TD due to regulatory scrutiny. Typical cycle of what happens to all the large banks, but no skeletons lurking. Both are buys today. Valuations are fairly attractive. Outlook for dividend growth isn't as strong given current environment, but still good dividend vehicles.

RY is the 800-pound gorilla, with the ability to maneuver the banking sector any way it wants. He's long this one in his core strategy.