7/25/2023 0 Comments Royal tsx like softwareThe stock trades near $53 per share at the time of writing compared to as high as $59.50 last June. Investors who buy the stock at the current price are paying about 12.5 times trailing 12-month earnings, so Royal Bank shares are not cheap today, but you get a world-class bank and a 4% dividend yield.Įnbridge has a current market capitalization of about $106 billion. Royal Bank remains very profitable with fiscal Q1 2023 adjusted return on equity (ROE) of nearly 17%. Investors should see long-term benefits from the two acquisitions. Royal Bank also decided to beef up its global wealth management operations with its purchase last year of U.K.-based Brewin Dolphin for $2.4 billion. The acquisition is expected to close in the first quarter (Q1) of 2024. Instead, the bank is using its cash hoard to buy HSBC Canada for $13.5 billion in a deal that will add about 130 branches. Royal Bank avoided the temptation to make a big acquisition in the United States in the past year. This influx of cash is a bonus for the big lenders. Customers are moving deposits out of smaller institutions and putting the money in larger banks. That’s up from the October low around $118 and not far off the $139 it reached in February before the March downturn that hit the bank sector.īig banks are viewed as being safer bets right now, as investors worry that the recent the failure of several regional banks in the United States is just the beginning of a wave of trouble for the industry. This is largely due to the company’s size and its diversified revenue stream.Īt the time of writing, Royal Bank trades near $132 per share. The stock has held up better than most banks through the recent turmoil. Royal Bank is Canada’s largest bank with a current market capitalization near $183 billion. Investors seeking reliable picks for their Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) are wondering if these top dividend stocks are good to buy right now in an era of economic uncertainty. Royal Bank ( TSX:RY) and Enbridge ( TSX:ENB) are industry leaders and TSX giants. Written by Andrew Walker at The Motley Fool Canada
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