Royal Bank (RY.TO)

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.

He'd never say sell RY. Great to hold long term. If we're going to get granular, hit a bit of a lull around $135. Probably will see interest again around $126. Hold. If you don't own any, the best one to buy a starter position in today.

He owns RY and TD in the space. More stable and diversified than the others.

Stick with it. The banks offer stability and pretty good value. RY has regained its premium valuation. Their yield is still above 4%. They remain the top bank in Canada and are prominent internationally. The big question with the banks is what will happen with the loan books. All the banks have made aggressive moves in loan loss provisions, though.

If interest rates decline as he expects, the banks will absorb any losses that arise, but that loss ratio will be a lot of lower if rates normalize. He likes the whole group, but you're safer with RY. TD offers a lower PE, true. RY is a steady producer, is the highest-quality Canadian bank. 

Banks will do better next year, with rates coming down or remaining stable at the very least. Issue with RY is integrating its approved takeover of HSBC. Low expectations going into Q1. Will be higher than it is today.