Royal Bank of Canada (RY) is one of the Canadian banks – the largest of the Big Five by market cap. Royal Bank has operations in 52 countries including a strong presence in the Caribbean. The Big Five Canadian banks control most of Canada’s financial sector and are counted amongst the safest and strongest financial institutions. The companies have a long track record of being conservative and focused on long-term stability and prosperity.
RY has existed as an institution since 1864 and paid dividends since 1870. It makes for a great core position in any investor’s portfolio. There are plenty of headwinds facing the Canadian economy and the banks – including a recession, weak Canadian dollar, possibility of a housing bubble and potential crash – which have led to very attractive valuation levels for investors looking to initiate or add to their positions. This article takes a closer look at the stock and provides a full dividend stock analysis.