In partnership with
One Stock Every Long-Term TFSA Investor Should Own
Royal Bank of Canada (TSX: RY) is Canada’s largest bank by market capitalization and one of the most dominant financial institutions in the country. With over CAD $2.2 trillion in assets, a massive domestic footprint, and meaningful exposure to global wealth management and capital markets, RBC is often viewed as a “forever” TFSA core holding for long-term investors.
Does your car insurance cover what really matters?
Not all car insurance is created equal. Minimum liability coverage may keep you legal on the road, but it often won’t be enough to cover the full cost of an accident. Without proper limits, you could be left paying thousands out of pocket. The right policy ensures you and your finances are protected. Check out Money’s car insurance tool to get the coverage you actually need.
Below is a clear, data-driven snapshot of what’s happening with RBC right now, why investors are paying attention this week, and what the forward outlook looks like.
This Week’s Major Developments
Stock near all-time highs: RBC closed at $233.56, sitting just shy of its 52-week high of $234.29, reflecting strong momentum in Canadian financial stocks.
Earnings strength still resonating: The market continues to digest RBC’s recent earnings, where capital markets and wealth management performance exceeded expectations, supporting investor confidence.
Sector tailwinds: Canadian banks remain beneficiaries of stable net interest margins and improving capital markets activity, keeping sentiment elevated across the sector.
Key Metrics Snapshot
Metric | Value |
|---|---|
Stock Price (Close) | $233.56 |
Weekly Movement (5-Day) | +1.5% |
Market Cap (USD) | $238.1B |
P/E Ratio | 16.6x |
Forward P/E | 13.6x |
52-Week Range | $151.25 – $234.29 |
YTD Return | +39.3% |
Forward Dividend Yield | 2.8% |
Overall vibe:
Momentum: ⭐⭐⭐⭐☆
Stability: ⭐⭐⭐⭐⭐
Valuation: ⭐⭐⭐☆☆
Advertise with Wealth Awesome
Want to get in front of our audience of 20,000+ savvy Canadians ?
Analyst Insights
Item | Details |
|---|---|
Consensus Rating | STRONG BUY ⭐⭐⭐⭐☆ |
Average Target Price | $233.82 |
Upside Potential | +0.11% (fairly valued) |
Target Price Range | $217 – $246 |
Analyst Recommendation Breakdown (14 Analysts)
Rating | Count |
|---|---|
Strong Buy | 10 |
Buy | 2 |
Hold | 2 |
Sell | 0 |
Strong Sell | 0 |
Analysts clearly view RBC as a high-quality compounder, even if near-term upside is modest after a strong run.
Recent News Highlights
Here are the most relevant recent headlines shaping the RBC narrative:
RBC posts strong quarterly results, driven by capital markets and wealth management strength, reinforcing its earnings durability.
RBC continues balance sheet optimization and funding activities, supporting long-term capital stability.
Canadian bank stocks remain in favor, with RBC leading the group due to scale, diversification, and consistent execution.
Growth Indicators (Forward-Looking)
Growth Metric | Estimate |
|---|---|
Sales Growth (Next Year) | +5.0% |
EPS Growth (Next Year) | +9.8% |
5-Year EPS Growth Estimate | +0.8% (steady, not explosive) |
Key takeaway: RBC isn’t a hyper-growth stock — it’s a reliable earnings + dividend compounder, ideal for long-term TFSA investors focused on stability and consistency.
Dividend Profile (Why TFSA Investors Care)
Dividend Metric | Value |
|---|---|
Forward Yield | 2.8% |
Payout Ratio | 42.8% (healthy) |
5-Year Dividend Growth (Avg.) | 7.4% |
Forward Dividend / Share | $6.56 |
RBC’s dividend track record makes it especially attractive for tax-free compounding inside a TFSA.
When AI Outperforms the S&P 500 by 28.5%
Did you catch these stocks?
Robinhood is up over 220% year to date.
Seagate is up 198.25% year to date.
Palantir is up 139.17% this year.
AltIndex’s AI model rated every one of these stocks as a “buy” before it took off.
The kicker? They use alternative data like reddit comments, congress trades, and hiring data.
We’ve teamed up with AltIndex to give our readers free access to their app for a limited time.
The next top performer is already taking shape. Will you be looking at the right data?
Past performance does not guarantee future results. Investing involves risk including possible loss of principal.
Bottom Line
Royal Bank of Canada (TSX: RY) checks nearly every box for a buy-and-hold-forever TFSA stock:
🏦 Market leader with dominant scale
💰 Reliable and growing dividend
📈 Strong long-term total returns
🧠 Strong analyst conviction
It may not be “cheap,” but for investors seeking durability, income, and long-term compounding, RBC remains one of the best Canadian stocks to own for the long run.
Advertise with Wealth Awesome
Want to get in front of our audience of 20,000+ savvy Canadians ?
The Wealth Awesome Team