Q: Royal has significantly outperformed all other major Canadian banks. Is it too late to purchase or will Royal continue outperforming the others?
5i Research Answer:
RY is certainly he leader in terms of size amongst the big Canadian bank stocks. NA has actually outperformed over numerous time periods, but over a three year timeframe, RY has been number 1. We would not say it is too late to purchase. Bank stocks and in particular RY have done a great job of returning capital to shareholders through dividend growth over recent years acting as relatively low risk investments. At 14x forward earnings, we think it is buyable.