Royal Bank of Canada Dividend Stock Analysis 2017

Royal Bank of Canada

Royal Bank of Canada (RY.TO)(RY) is the largest of the Canadian banks by market cap. The company provides a diversified array of financial services operating via five segments: Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets. Royal Bank was founded in 1864 and is headquartered in Toronto, Canada.

A Closer Look

Royal Bank is the largest of the Big Five Canadian banks. The company’s peers include Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CM).

The Canadian banks are regarded as some of the safest financial institutions in the world. The companies have a long track record of being conservative and focused on long-term stability and prosperity. Most of these institutions have existed and paid dividends for more than 150 years and make for great core positions in any investor’s portfolio.

Royal Bank has focused and regarded asset management and wealth management, especially focusing on the (ultra) high net worth individuals as their growth strategy. It is for this reason that the company spent over $5B to acquire City National Corp, its biggest takeover move targeting the wealthy Southern California residents.

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4 thoughts on “Royal Bank of Canada Dividend Stock Analysis 2017

  1. Ah, the Canadian banks. What can on say about a company that had already had 15 years of dividend payments under their belts before the events of “Back To The Future: Part 3” happened. Maybe Marty should have bought some TD stock before meeting up with Doc.

    Like with the TD article, I’m curious if you’re calculating the fair value of the Canadian shares or the US shares. Because the fair value you got is about $20 more than tabs current price of RY on the NYSE, yet you refer to it as “overvalued”. It’s about the same discrepancy ($20/share) that the TDstock had.

    Thanks for the great evaluations. This Angry Retail Banker always appreciates bank stock valuations.

    ARB–Angry Retail Banker

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