Thursday, December 11, 2008

Royal Bank 2

I reviewed this bank (TSX-RY) yesterday as far as my spreadsheet for the October 2008 annual statement goes. The Royal Bank is on Mike Higgs’ list at, on the Dividend Achievers list at, and on the Dividend Aristocrats list at (see indices).

When looking at what analyst say on this stock, it would appear that most expect the Earnings per Share (EPS) to go up in 2009, and be higher than that earned in 2007 and 2008. Looking at ratings, they range from Strong Buy to Hold, with the average rating being a Buy. (See my site for information on analyst ratings.)

Looking at the charts, this stock has done better than the TSX and the Financial Sub-Index in the periods of year-to-date, 1, 3 and 5 years. If you go to 10 years, it has done as well as the Financial Sub-Index and better than the TSX. Looking at problems, the Return on Equity (ROE) at 11.8% is lower than the 5 year average of 17.7%, although, this would be expected in a bear market.

Things on the spreadsheet that points to this stock being a current good buy is that the dividend yield is about 5.7% and this is higher than the 5 year average of 3.3%; the P/E for 2009 is about 8%, and this is lower than the 5 year average of 14.5%. The Accrual Ratio is negative, and this is good, but it is not low enough to signal a buy. As I said yesterday, I have done very well by this stock as I have made a return of 19.5% per year on this stock since I bought it in 1995.

This is a bank. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. It operates in Canada, USA, Caribbean, and other places around the globe. Its web site is See my spreadsheet at I have reloaded by spreadsheet.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

1 comment:

  1. RBC Bank President Gordon Nixon - Salary $11.73 Million


    I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

    There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
    Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
    Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

    Phone or e-mail:
    RBC President, Gordon Nixon, Toronto (416)974-6415
    RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
    RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail
    RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
    RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail
    RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail
    RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail
    RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail
    Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail

    "Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"