Royal Bank of Canada (RY)
Royal Bank of Canada (RY) is having an excellent 2013. Its adjusted net income for the first nine months of the year through the end of July was up 12.3% to C$6.3 billion, and is expected to grow by 8.7% in Q4 to C$2.2 billion.
Driving the bus — like all Canadian banks — is RY’s personal and commercial banking segment, which generates about 51% of its overall net income. Like BMO, Royal Bank’s wealth management business has become a key second driver of profits for the bank thanks to rising global stock markets.
The Royal Bank doesn’t really jump out at you for anything in particular except for making money, and that’s the name of the game.
RY recently has been increasing its dividend twice annually (did so in Q1 and Q3), so don’t expect an increase when the company announces earnings tomorrow. However, its current dividend yield of 3.9% still is higher than many of its major peers in the U.S., such as JPMorgan (JPM) and Wells Fargo (WFC).
What you lose in excitement, you gain in stability.
RY Rating: 7.5