|Bid||106.41 x 0|
|Ask||106.43 x 0|
|Day's Range||106.37 - 108.14|
|52 Week Range||97.30 - 109.68|
|Beta (5Y Monthly)||0.99|
|PE Ratio (TTM)||11.82|
|Earnings Date||Feb. 20, 2020|
|Forward Dividend & Yield||4.20 (3.88%)|
|Ex-Dividend Date||Jan. 23, 2020|
|1y Target Est||113.07|
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Royal Bank (RY) have what it takes? Let's find out.
(Bloomberg) -- Ontario Municipal Employees Retirement System, one of Canada’s largest pension funds, cut its stock holdings last year as its returns climbed and added to its infrastructure bets.The firm lowered its share of stocks to 29% of its portfolio in 2019, from 33% the year before, according to a statement released Monday. It generated returns from its public equity investments of about 20.3% from the prior year.“All asset classes generated positive returns, led by public equities,” Omers Chief Executive Officer Michael Latimer said in the statement. “Over the past five years, we have earned C$9.8 billion ($7.4 billion) of net investment income over the amount required to fund our pension obligations.”Omers returned 11.9% on its investments last year, pushing assets under management to C$109 billion. It also increased its exposure to infrastructure slightly, while decreasing its real state and private equity holdings moderately.The fund may have reduced its investments in stocks in the nick of time as markets globally were roiled as authorities struggled to keep the coronavirus from spreading more widely outside of China. Finance chiefs and central bankers from the largest economies warned this weekend that they saw the virus bringing downside risks to global growth.Other notable numbers:Total public investments returned 16.4% in 2019 -- its largest returns last year -- after losing 4.6% the year before.The fund reduced its government bonds and inflation-linked bond holdings by half during the year to 3% and 2% respectively.It cut its public credit exposure to 19% from 17% a year ago.The fixed income portfolio returned 6.7% in 2019 versus 1.8% the year before.Omers is not “overly confident nor complacent” going into this year, said Blake Hutcheson, who takes over as CEO of the fund in June when Latimer retires. The pension fund trimmed positions across the board to cut its economic leverage to virtually zero, he said Monday in a roundtable discussion with reporters in Toronto.Assets called “short-term instruments” in the fund’s 2019 results went to zero from negative 13% in 2018, according to its statement.“Our portfolio is not just very well diversified but it also got a very comfortable level of dry powder, which is a good place to be given the way markets are,” Hutcheson said. “It’s just been a prudent strategy to fortify our balance sheet going into this period.”While OMERS managed to beat its 7.5% return benchmark, results trailed the average 14% increase of Canadian defined pension plans, as estimated by RBC Investor Services. Last week, Caisse de Depot et Placement du Quebec, Canada’s second-largest pension fund, said it returned 10% on its investments last year. Its assets under management grew to C$340.1 billion from C$309.5 billion a year ago.New Chief at Omers Sees Canada Pensions as ‘Envy of the World’Founded in 1962, Omers oversees the retirement savings for nearly 500,000 municipal employees, school board, emergency services and local agency members across the province of Ontario. It plans to grow assets to C$200 billion over the next seven to 10 years, Hutcheson said.(Corrects to remove reference to private investments total return in first bullet point.)To contact the reporter on this story: Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Divya BaljiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Coming off a strong year in 2019, RBC is one of the most stable and secure investments in Canada. With profit up 11% in the last quarter, RBC has increased its quarterly dividend by 3% to $1.08 per share.
Dr. Bill simplifies medical billing with a mobile-first platform that allows for on-the-go claims and direct payments. TORONTO , Feb. 24, 2020 /CNW/ - RBC Ventures has acquired Dr. Bill, a premium billing solution that simplifies and streamlines the billing and payment process for Canada's medical community. Currently available in Ontario , British Columbia and Alberta , Dr. Bill provides doctors with a user-friendly mobile billing platform, as well as dedicated live agents, to deliver an industry-leading billing success rate.
TORONTO , Feb. 21, 2020 /CNW/ - RBC Global Asset Management Inc. (RBC GAM Inc.) today announced that administration fees for certain RBC Funds, BlueBay Funds and RBC Corporate Class Funds will be reduced ...
(Bloomberg) -- Royal Bank of Canada’s dealmaking division is back to proving its worth.The RBC Capital Markets unit had record earnings in the fiscal first quarter, helping Canada’s largest lender post results that beat analysts’ estimates. Fees from investment banking jumped 82% from a year earlier amid a better dealmaking environment, and fixed-income trading more than doubled.The turnaround, which follows back-to-back profit declines in the division, helped Royal Bank post an 11% jump in earnings for the three months through January. The comeback follows a similar rebound at U.S. investment banks, which reported an improvement in trading revenue when they announced fourth-quarter results last month, and sets a benchmark for the other large Canadian lenders when they report their earnings next week.“Both trading revenues and underwriting and advisory revenues easily surpassed our forecasts and pushed earnings past our above-consensus estimate,” Robert Sedran, a CIBC Capital Markets analyst, wrote in a note to clients Friday.Trading revenue rose 21% to C$1.27 billion ($954 million). The increase helped make RBC Capital Markets the bank’s top-performing business for the quarter. Profit in the division surged 35%. Royal Bank’s adjusted per-share earnings of C$2.44 beat the C$2.30 average estimate of analysts in a Bloomberg survey.Royal Bank rose 1.2% to $109.31 at 9:37 a.m. in Toronto. It has gained 6.4% this year, making it the top performer in the eight-company S&P/TSX Commercial Banks Index, which has climbed 3.6%.The lender has the biggest investment-banking operations among Canada’s large banks, with significant business in Canada and the U.S. and a growing platform in Europe. That helped Royal Bank land more deals, lifting underwriting and advisory fees to C$627 million from C$345 million a year earlier.Soured LoansThe Toronto-based lender set aside less money for soured loans, after rising credit losses caused concern among investors last year. Provisions for credit losses fell 18% to C$419 million from a year earlier, when it was hurt by bad loans to a U.S. shopping-mall owner and bankrupt California utility PG&E Corp.Plans for slowing expense growth, however, have yet to come to fruition: Net interest expenses rose 7.9% to C$6.4 billion, the largest increase in three quarters. After years of spending big on technology and investments, Royal Bank executives said in December they expected expense growth to moderate to “low single digits” this year. The increase was largely due to growth in staff-related costs, including higher variable compensation, Chief Financial Officer Rod Bolger said on a conference call with analysts.Also in the earnings report:Royal Bank saw little change in net interest margins, while gains in key businesses including Canadian banking and wealth management drove overall earnings to a record C$3.5 billion.Canadian personal and commercial banking is the lender’s biggest division, and its largest source of profit. Earnings from the unit rose 5.2% to a record C$1.62 billion in the quarter. Wealth management, meanwhile, had a 4.4% increase in profit to C$623 million.The growth in Royal Bank’s domestic mortgage book has accelerated for four straight quarters. In the three months through January, mortgages rose 8.6%, their biggest increase from a year earlier in at least five years.(Updates with shares in sixth paragraph.)To contact the reporter on this story: Doug Alexander in Toronto at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, ;Derek DeCloet at email@example.com, Daniel Taub, Steve DicksonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The CPP payout will be insufficient for most retirees. You can look to buy stocks such as the Royal Bank of Canada to create long-term wealth and supplement the CPP payouts.
TORONTO — Royal Bank of Canada is monitoring the recent, novel coronavirus outbreak and rail blockades across the country, but says it's too early to see the full impact of either yet.Graeme Hepworth, the Toronto-based bank's chief risk officer, said Friday he is watching the new form of the coronavirus, which has spread to a handful of Canadians and tens of thousands more around the globe, because it exposes RBC to multiple dangers."First and foremost, it's just the health and safety of our employees and then ensuring that we have the operational continuity and resiliency to work through this period and work through a period where it could potentially get worse," he said. "And then we look at the financial side of it."He noted RBC does not operate in Mainland China, so the bank has no direct exposure to the affects of the outbreak there, but the bank could feel the impact of "the Chinese consumer kind of disappearing for a period" and disruptions to supply chains because of China's prominence in manufacturing.Hepworth said the bank is evaluating the sectors it thinks are most impacted and engaging with its clients around the issue, "but the reality is that this is too early, too soon to really have a view as to the real impact here.""It's going to really depend on the duration of this and the severity going forward and right now, that's highly uncertain," he said. "We're not seeing any impacts in our portfolio at this point in time, so we are monitoring in potential."Hepworth's outlook was much the same, when asked opponents to the Coastal GasLink pipeline, who have blocked rail lines in Ontario, Quebec and B.C., causing CN Rail to suspend service and Via Rail to cancel dozens of passenger trains."It's too uncertain and it's too early to provide any guidance as to how material that could be," he said, referring to potential impacts on the bank's second-quarter earnings, which are due in May.His remarks, made on the company's first-quarter conference call, came as the bank raised its dividend and reported a profit of $3.5 billion for the period, which on ended Jan. 31.The bank will now pay a quarterly dividend of $1.08 per share, up from its previous payment to shareholders of $1.05 per share.RBC's profit amounted to $2.40 per diluted share for the quarter compared with a profit of nearly $3.2 billion or $2.15 per diluted share in the same quarter a year earlier.The bank said its adjusted diluted cash earnings per share for the quarter amounted to $2.44.Analysts on average had expected an adjusted profit $2.31 per share, according to financial markets data firm Refinitiv.RBC attributed those results to record earnings in capital markets as well as strong earnings growth in its personal and commercial banking operations. It also saw growth in wealth management and insurance, partially offset by lower results in investor and treasury services."We had a great start to the year, delivering record quarterly earnings...We reported record results in Canadian banking and capital markets and very strong results in wealth capital management, despite interest rate headwinds, and a good quarter in insurance," RBC chief executive Dave McKay says. "Our results were driven by strong volume growth across our leading client franchises, lower provision for credit loss and prudent expense management."SIA Wealth Management Inc.'s chief market strategist Colin Cieszynski said in a note to investors that he took such results as a sign that "Canadian bank earnings season is off to a positive start."RBC was the first of Canada's big banks to report their earnings. TD Canada Trust, the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce and the National Bank of Canada will follow next week.This report by The Canadian Press was first published Feb. 21, 2020.Companies in this story: (TSX:RY, TSX:TD, TSX: BNS, TSX:CM, TSX: NA) Tara Deschamps, The Canadian Press
(Bloomberg) -- Hard-currency bond investors have already downgraded South Africa to junk.The premium investors demand to the country’s dollar debt rather than U.S. Treasuries climbed above the emerging-market average in October, shortly before Moody’s Investors Service cut the country’s credit outlook to negative. It has now been above the mean for the longest period since Bloomberg started tracking the data in 1997. Previously, South Africa’s sovereign spread crossed above the average for brief periods only during times of stress.Many investors expect South Africa to lose its last investment-grade rating. Their only question is when.Moody’s is scheduled to review the assessment shortly after Finance Minister Tito Mboweni’s key budget statement. To escape a downgrade, Mboweni would have to convince Moody’s that the government is on track to restructure ailing state-owned companies, and has credible plans to curb the budget shortfall and fuel growth.“We are skeptical the government will make sufficient progress on fiscal consolidation in time for the 2020 budget,” analysts at RBC Securities wrote in a note. “We expect Moody’s to downgrade South Africa to non-investment grade in March, though the decision is likely to be a close call.”Others, including Morgan Stanley’s Johannesburg-based Andrea Masia, expect the downgrade to be delayed until November.To contact the reporter on this story: Colleen Goko in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Alex Nicholson at email@example.com, Robert Brand, Srinivasan SivabalanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TORONTO , Feb. 21, 2020 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) announced today that its board of directors has declared an increase to its quarterly common share dividend of three cents , or ...
All amounts are in Canadian dollars and are based on financial statements prepared in compliance with International Accounting Standard 34 Interim Financial Reporting, unless otherwise noted. TORONTO , Feb. 21, 2020 /CNW/ - Royal Bank of Canada (RY on TSX and NYSE) today reported net income of $3,509 million for the quarter ended January 31, 2020 , up $337 million or 11% from the prior year, with strong diluted EPS growth of 12%. Results were driven by record earnings in Capital Markets, as well as by strong earnings growth in Personal & Commercial Banking reflecting continued robust volume growth in our Canadian Banking franchise.
(Bloomberg) -- Caisse de Depot et Placement du Quebec returned 10.4% last year as stocks and fixed income shielded Canada’s second-largest pension fund manager from a poor performance in real estate.Net investment income for 2019 amounted to C$31.1 billion ($23.5 billion), compared with C$11.8 billion a year earlier, the Montreal-based fund manager said Thursday in a statement. Net assets rose to C$340.1 billion (C$257 billion) as of Dec. 31, from C$309.5 billion at the end of 2018.Public and private equity returned 15.3%. The Caisse said its public equities portfolio trailed its own benchmark by slightly less than one percentage point, partly due to its strategy of prioritizing value stocks, which are a longer term play. Chief Executive Officer Charles Emond said the portfolio delivered during a year that saw markets getting “carried away” and seem disconnected from real growth.“We are seeking to build a portfolio that is more diversified, more stable, more reliable, less vulnerable to market moves,” Emond said Thursday at the pension fund’s headquarters in Montreal.Fixed income assets returned 8.9%, as the pension fund increased its exposure to corporate credit, real estate debt, specialty finance and sovereign credit. It’s also investing more in credit assets outside of Canada. Like other asset managers, the pension fund is trying to increase its holdings of higher-yielding private credit, but is doing so slowly because finding and screening companies is labor intensive, head of corporate credit James McMullan said last November.Malls SufferThe Caisse’s real assets portfolio, which includes infrastructure and real estate, was its worst performing asset class, returning 1%. Real estate holdings lost 2.7%. It was affected by the weak performance of Canadian shopping centers, whose valuations are declining as a result of a consumer shift toward e-commerce, and by residential real estate in New York, in light of new regulations to control rent increases.The Caisse manages the pension plan of retirees in Quebec, Canada’s second most populous province, as well as various provincial insurance plans.Its 2019 results trailed the average 14% increase of Canadian defined pension plans, as estimated by RBC Investor Services. The Caisse results were 1.6% below the fund manager’s own benchmark, mostly due to the performance in the real estate and infrastructure portfolios.Still, the pension fund said it has generated C$11 billion in value added compared to its benchmark portfolio over five years and more than C$18 billion over ten years. The Caisse said its weighted average annual return was 8.1% and 9.2% for five and 10 years, respectively.To contact the reporters on this story: Paula Sambo in Toronto at firstname.lastname@example.org;Sandrine Rastello in Montreal at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Derek DecloetFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Royal Bank of Canada (TSX:RY)(NYSE:RY) and The Toronto-Dominion Bank (TSX:TD)(NYSE:TD) are two bank stocks worth comparing
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world threatened by trade wars. Sign up here. Less than a month before a U.K. budget intended to set out Prime Minister Boris Johnson’s post-Brexit economic vision, the reset button has been hit.The resignation of Sajid Javid, the man due to present what’s traditionally a closely watched piece of political theater, has upended economic policy. It calls into question the government’s fiscal prudence -- a long-standing trait of Johnson’s Conservative Party -- and even when the blueprint will be unveiled.In short, it’s a mess. Javid quit as chancellor of the exchequer because he was asked to fire his most senior advisers. His position is second only to that of prime minister and enjoys a degree of autonomy. The interference suggests Javid’s reputation as a fiscal hawk clashed with a desire in 10 Downing Street for looser purse strings.Now, with Johnson having greater control, an even more generous tax and spending program could be in the works. In a sign of just how much is up in the air, the prime minister’s own spokesman couldn’t confirm that the fiscal rules Javid himself had set would still apply. The March 11 budget might be deferred. On Friday, cabinet minister Robert Jenrick said the budget will go ahead in March but declined to confirm the precise date.Anticipation that new chancellor Rishi Sunak, previously Javid’s deputy, will be less of a brake on spending ambitions prompted the pound to rally Thursday and pushed gilts lower.“Trump-style stimulus could return,” said Benjamin Nabarro, an economist at Citigroup Inc. “Javid’s resignation makes it more likely that the Conservatives jettison their 2019 fiscal framework sooner, paving the way for large fiscal easing.”The budget was already expected to deliver a fiscal stimulus, with more money for cash-strapped public services and billions of extra pounds for infrastructure to “level up” struggling regions.Taken together, the infrastructure boost and an additional 12 billion pounds ($16 billion) for public services announced in September could deliver a stimulus of well over 1% of GDP in 2020-21. Excluding the financial crisis, that would represent the biggest fiscal loosening since the early 2000s when Tony Blair was prime minister.What Our Economists Say:“The risk is Sunak changes the rules to give him more space to open the spending taps. That would create upside risks to our growth and inflation forecasts and also make it more likely the Bank of England’s next move will be up rather than down.”\-- Dan Hanson, Bloomberg Economics. For the full U.K. INSIGHT, click hereNabarro says new plans could include tax cuts, which would provide a much more immediate boost to the economy than investment projects.RBC economists Cathal Kennedy and Peter Schaffrik agree that something more could be on the way.“Why go through the trouble of reorganizing the workings of the Treasury and essentially push an unacceptable arrangement on the Chancellor, if there are no big changes planned, both in substance and in size,” they wrote.Javid’s fiscal rules allow extra infrastructure spending but also require day-to-day public spending and revenue to be in balance within three years. That goal is much tighter than had been expected, and Javid had also asked ministers to find savings ahead of a spending review due this year.Even before Thursday’s political shock, there were questions over how the government could fund its spending plans and meet targets. The National Institute of Economic and Social Research estimated a 10 billion-pound gap and said the framework may have to be revisited.In his resignation letter, Javid said the Treasury must retain “as much credibility as possible.”Sunak, who was chief secretary to the Treasury under Javid and previously worked at Goldman Sachs, has a very short timeframe if Johnson’s administration wants to recast the rules before its first budget.“The new chancellor will want to put his own mark on the budget, leading us to believe it will be much more expansionary,” said David Zahn, head of European fixed income at Franklin Templeton. “This news also solidifies Boris Johnson’s position giving him more free reign to get things done.”(Adds Jenrick comment on budget in fourth paragraph)\--With assistance from Joe Mayes, Robert Hutton and Andrew Atkinson.To contact the reporters on this story: Lucy Meakin in London at email@example.com;Jessica Shankleman in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Flavia Krause-Jackson at email@example.com, ;Fergal O'Brien at firstname.lastname@example.org, Brian Swint, Paul GordonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.