Should You Buy RBC Stock in 2023 If you’re thinking about purchasing Royal Bank shares in 2023, you should be aware of the company’s overall performance as well as RBC’s present value and the broader outlook for Canadian banking.
Check out our post on the Best Canadian Bank Stocks for additional details on related investments, and the Best ETFs in Canada for 2023 can help you decide whether you’d rather use a passive investing technique rather than picking individual stocks.
WANT TO BUY RBC SHARES? PRICE, PERFORMANCE & ANALYSIS
- RBC Stock Price: 127.06
- Dividend Yield: 4.13%
- Price-to-Earnings (P/E) Ratio: 12.17
- 5yr Earnings Per Share Growth: 7.63%
- 5yr Dividend Growth: 7.34%
- Payout Ratio: 44.68%
OUR 2023 ROYAL BANK STOCK ANALYSIS
- At $130 per share RBC represents solid value – if not screaming “buy now”.
- It’s down from all-time highs.
- Most diversified Canadian bank by far.
- Most expensive valuation versus other Canadian banks.
- Stable dividend, days of meteoric growth are in the past.
- Small systemic risk of Canadian economy slowdown (specifically housing).
Overall, our RBC Bank stock analysis is that shares are currently fairly priced. The premium valuation is justified by the fact that Canada’s biggest company has massive brand equity and a proven track record of stable growth.
RBC Has been a very shareholder-friendly company for several decades, as they efficiently pass profits on via twice-per-year dividend increases.
Our stock suggestions are mostly based on the data we obtain from Dividend Stocks Rock by Mike Heroux. Mike provides free webinars, cutting-edge tools, and specific stock recommendations. By clicking the button below, you can read our complete evaluation of DSR or go to their website.
Should You Buy RBC Stock in 2023
When you purchase Royal Bank stock, you are aware of what you are purchasing.
Shares of a corporation with a multi-century track record of steady, cautious growth are always a good addition to your portfolio.
Given its much smaller market value and potential for development, National Bank, a competitor of RBC, was mentioned in our article on Canadian Dividend Kings and Aristocrats as potentially being a more risky alternative.
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Since they have withstood the storm of sluggish GDP growth and higher taxes from the Trudeau administration, Canadian banks have looked decent so far in 2023.
Among Canadian banks, RBC continues to command the highest value, but there are numerous reasons why investors still adore this business despite its hefty price tag.
RBC is a highly low-risk investment for 2023 due to its capacity to create income from a wide range of banking activities, as well as its outstanding management team and substantial investing moat.
HOW TO BUY RBC SHARES
Using one of Canada’s online brokerages, you can buy and sell RBC shares.
Since I started the site 16 years ago, bargain brokerages have received the most comments, so we take them seriously at MDJ.
As a result, we regularly update our comparison of discount brokerages and always give users not just the best overall suggestions but also the best promotional deals available at the time.
Once you open a brokerage account, purchasing shares of RBC or any other stock is as easy as finding the ticker symbol (in this case, RY.TO) and determining the desired number of shares.
For instance, if the price of RBC stock is $130 and I wish to invest $1,300 in shares, I would enter “10” and “market limit.” Then my online broker would ask me, “Do you want to buy 10 shares of RBC for $130 each, for a total of $1,300?”
The rest will be handled by the internet broker when you confirm the order.
Congratulations, you now own a portion of Canada’s largest corporation!
It’s time to relax and let the dividends and capital gains come in.
IS ROYAL BANK STOCK DIVIDENDS PAYABLE?
Dividend investors adore Canadian bank equities (for good reason).
They are solid, reliable dividend payers who take a conservative approach to both their payout ratios and their long-term investment decisions.
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RBC pays dividends every three months (usually arriving near the end of February, May, August, and November).
The current dividend amount is $5.28.
The dividend yield of Royal Bank is currently just over 4%.
The dividend payouts at RBC typically increase twice a year. The dividend was increased by 10% in the previous year, however over the previous five years, there has been a significant dividend growth rate of 7.35%. All throughout the world, dividend growth investors are ecstatic about that. Here are some more of our recommendations for the best Canadian dividend stocks.
RBC STOCK PREDICTION
The Royal Bank of Canada has a favourable oligopoly market position and effective management, which makes it the largest firm in Canada.
The end effect has been a unique combination of above-market profits and unrivalled consistency.
Of fact, past performance is not always a reliable predictor of future results.
RBC is without a doubt a fantastic business that will produce money and benefit shareholders going forward.
The fundamental question is how much growth and value have already been included into stock value.
RBC is currently trading at a premium compared to other Canadian banks since its price-to-book ratio is over 1.8.
I wouldn’t let the unfavourable banking news coming out of the USA influence your individual forecast for RBC shares.
Mid-sized US banks are completely different from Canadian banks in terms of their business model and are subject to very distinct regulations.
Given how well-diversified RBC’s earnings are, it probably merits its high value, which is why it makes up a significant portion of my portfolio.
The state of the economy as a whole and RBC’s ability to integrate their recent HSBC purchase will be key factors in any stock analysis for the company over the coming years.
I have a good feeling that RBC will be able to handle both of those difficulties.
