Latest news with #RoyalBank
Yahoo
4 days ago
- Business
- Yahoo
3 Canadian Dividend Knights Trading at Bargain Prices
Written by Amy Legate-Wolfe at The Motley Fool Canada When the market gets choppy, dividend stocks are often a safe harbour. But not all dividend stocks are created equal. Some companies have a long history of not just paying, but raising dividends through economic cycles. These are the dividend knights: mature, dependable firms with a proven track record. And when these trade at bargain prices, it's usually a rare opportunity. Right now, three Canadian dividend knights stand out: Royal Bank of Canada (TSX:RY), TELUS (TSX:T), and Enbridge (TSX:ENB). Let's take a closer look at why these blue-chip dividend stocks could be worth buying today. RBC Royal Bank is Canada's largest bank and a pillar of stability in the financial sector. And now, the dividend stock is back, far beyond its 2022 highs and surging. Even so, it holds a massive dividend now at 3.4% or $6.16 annually. So, while investors might be concerned about loan loss provisions, slow mortgage growth, and the broader economy, Royal Bank continues to deliver strong results. In the second quarter (Q2) of 2025, it reported net income of $4.4 billion, up from 11% the year before. Its capital markets segment bounced back, wealth management held steady, and Canadian banking remained the core engine. The company's common equity tier-one ratio, a key measure of financial strength, stood at 13.2%, well above regulatory minimums. Royal Bank has raised its dividend every year since 2011 and remains well-positioned to keep doing so. At around 14.5 times forward earnings, it's a bargain for long-term investors. TELUS Next up is TELUS, the telecom stock that's quietly become one of the most shareholder-friendly companies in the country. TELUS offers one of the highest dividend yields among its peers, currently around 7.4%. That's come partly because the dividend stock is down over 35% from its 2022 peak. Higher interest rates have taken a toll on capital-intensive companies like telecoms, and TELUS hasn't been spared. But the business remains fundamentally solid. In Q1 2025, TELUS posted revenue of $5.1 billion, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 4%. The dividend stock added 218,000 new customer connections, including growth in mobile and home internet. The dividend has been increased annually for over a decade and is supported by strong recurring revenue. With a long-term view, this is the kind of discounted dividend knight that's hard to pass up. Enbridge Lastly, we come to Enbridge, the energy infrastructure giant that's practically synonymous with steady dividends. Enbridge has increased its dividend every year for nearly three decades. Today, it offers a yield of 6.1%, a solid yield for a solid dividend stock. The market has been cautious about the company's debt and its exposure to oil and gas, but its results continue to impress. In Q1 2025, Enbridge reported distributable cash flow of $3.8 billion, up 9% year over year. It reaffirmed full-year guidance and maintained a payout ratio within its target range. Furthermore, the company has secured $28 billion in its backlog. The dividend stock's growth plan includes natural gas expansion and renewables, offering a future-focused portfolio even as it keeps paying today's generous dividend. Bottom line Of course, no investment is risk-free. Banks are exposed to credit cycles, telecoms face regulatory hurdles, and pipelines are tied to commodity flows and politics. But these three dividend stocks have managed through decades of change and still deliver shareholder value. Better yet, they're trading at valuable prices. And right now, a $7,000 investment in each stock would bring in $1,179.46 each year! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT RY $182.00 38 $6.16 $234.08 Quarterly $6,916.00 T $22.50 311 $1.67 $519.37 Quarterly $6,997.50 ENB $61.75 113 $3.77 $426.01 Quarterly $6,978.75 Royal Bank, TELUS, and Enbridge all boast long dividend track records and dominant positions in their industries. With high yields and lower-than-usual valuations, each looks like a strong candidate for investors seeking passive income and long-term growth. Bargain-priced dividend knights don't come around often, and when they do, they're worth considering. The post 3 Canadian Dividend Knights Trading at Bargain Prices appeared first on The Motley Fool Canada. Should you invest $1,000 in Enbridge right now? Before you buy stock in Enbridge, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Enbridge wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and TELUS. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
6 days ago
- Business
- Globe and Mail
TSX breakouts: Bank stocks soar with one trading at a decade-high multiple
In this TSX Breakouts report, there are 82 stocks on the positive breakouts list (stocks with positive price momentum), while only six securities are on the negative breakouts list (stocks with negative price momentum). Gold stocks continue to shine, representing roughly 20 per cent of the securities on the positive breakouts list. Another leading segment of the market is the banking sector. Shares of CIBC (CM-T), Scotiabank (bns-T) and TD (td-T) are all on the positive breakouts list. Not far behind are shares of Royal Bank (ry-T) and the Bank of Montreal (bmo-T), which are both within 1 per cent of their record closes reached earlier this month. CIBC stands out based on its valuation. According to Bloomberg, shares of CIBC are trading at a price-to-earnings multiple of 11.7 times the fiscal 2026 consensus earnings estimate. Looking back over the past decade, this is the highest P/E multiple the stock has traded at and significantly above its 10-year average multiple of 9.4 times. While all five Canadian bank stocks are trading above their 10-year average multiples, CIBC has the widest gap. For instance, at the other end of the spectrum is Scotiabank, which is trading at a P/E multiple of 10.1 times the fiscal 2026 consensus estimate compared to its 10-year average multiple of 9.7 times. Scotiabank is the only Big Five bank stock with a negative year-to-date price return. Its shares are down 0.65 per cent in 2025. Given the recent run-up in the share price, CIBC's current dividend yield of 3.8 per cent is one of the lowest of the Big Five bank stocks - only Royal Bank has a lower yield. During its recent rally, a senior executive was selling shares of CIBC. On June 30, vice-chair, North American banking Jon Hountalas exercised his options, receiving 43,490 shares at a cost per share of $55.845, and sold 43,490 shares at an average price per share of approximately $96.31. Net proceeds totaled over $1.7 million, excluding any associated transaction fees. Shares of CIBC closed at a record high of $101.22 on July 22. However, based on the Street's average target price of $99.25, the stock may be fully valued, and price momentum in the near term could be limited. The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. Conversely, if a stock appears on the positive breakouts list, it may reflect a stock that is overbought in the near-term and vulnerable to a pause in the price momentum or a pullback, especially if investors decide to take some profits off the table. If a security appears on the negative breakouts list, it indicates negative price momentum, and may signal deteriorating fundamentals or may reflect a buying opportunity if the stock is undervalued by the market. Securities screened are from the S&P/TSX Composite Index, the S&P/TSX SmallCap Index, as well as Canadian small cap stocks outside of these indices that have a minimum market capitalization of $200-million. A technical analysis screen does not replace fundamental analysis but can help identify companies worth having a closer look at. This report should not be considered an investment recommendation for any of the listed securities. -
Yahoo
18-07-2025
- Business
- Yahoo
Should You Buy Royal Bank of Canada (RY) for Income in 2025? Here's What to Know
Royal Bank of Canada (NYSE:RY) is included among the . An investment banker in a power suit entering an exclusive board room with a confident stride. Royal Bank of Canada (NYSE:RY) is considered a reliable option for investors seeking consistent dividend income. The bank's broad revenue streams, diverse client base, effective cost control, strong asset quality, and steady earnings growth all contribute to the strength of its stock and dividend performance. Over the last ten years, the bank has increased its earnings at a compound annual rate of 7%, while its dividend has grown at a rate of 8%. Royal Bank of Canada (NYSE:RY)'s core business remains strong, supported by a growing loan portfolio, a stable deposit base, and continuous gains in operational efficiency. These factors help reinforce the bank's ability to maintain and raise its dividend. Backed by a solid balance sheet and prudent risk management practices, Royal Bank is well-positioned for long-term growth. Management has set a goal of growing the dividend by roughly 7% annually over the medium term, and with a payout ratio between 40% and 50%, there is still significant room for further dividend increases while keeping its financial position strong. On May 29, Royal Bank of Canada (NYSE:RY) declared a 4.1% hike in its quarterly dividend to C$1.54 per share. This marked the company's 15th consecutive year of dividend growth, which makes it one of the best dividend Canadian stocks to invest in. In the most recent quarter, the company returned $2.6 billion to shareholders through dividends and share repurchases. The stock has a dividend yield of 3.4%, as of July 15. While we acknowledge the potential of RY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Yahoo
18-07-2025
- Business
- Yahoo
How to Invest $250,000 in Canadian Dividend Stocks for $12,027 Each Year
Written by Amy Legate-Wolfe at The Motley Fool Canada When it comes to financial peace of mind, few things rival a reliable stream of dividend income. Whether you're planning for retirement or just want to free yourself from paycheque dependency, a well-built dividend portfolio can help you get there. If I had $250,000 to invest today and wanted to never worry about money again, I'd start with three dependable TSX stocks. Ones like Royal Bank of Canada (TSX:RY), Dream Industrial REIT (TSX: and TC Energy (TSX:TRP). Each offers something unique, but they all share a common trait: consistent income backed by strong fundamentals. RBC Royal Bank is Canada's largest bank and one of the top financial institutions in the world. It reported net income of $4.4 billion in the second quarter of 2025, up 11% year over year. Diluted earnings per share (EPS) hit $3.02, while its return on equity stood at 14.2%. That strength came from personal banking, wealth management, and commercial banking. While capital markets dipped, the bank's diversified business model held up. It also recently raised its dividend to $6.16 per share, boosting its annual yield to about 3.4% at writing. With a CET1 ratio of 13.2% and plans to buy back up to 35 million shares, Royal Bank is reinforcing its balance sheet while returning value to shareholders. In a world filled with economic uncertainty and rising trade disruptions, this kind of stability matters. Royal Bank's inclusion of HSBC Canada continues to enhance earnings, and with its size and scale, it remains a foundational stock for income seekers. Dream Industrial Next is Dream Industrial REIT, a real estate investment trust (REIT) that focuses on logistics and light industrial properties across Canada, Europe, and the U.S. The company has quietly become one of the top-performing industrial REITs on the TSX. In the first quarter of 2025, Dream reported net income of $70.6 million and funds from operations of $73 million, up from $69.6 million in the prior quarter. It also reported a 3.2% increase in net rental income year over year. With a monthly distribution of $0.05833 per unit, around $0.70 annually, the REIT offers a yield of about 5.9% at recent prices. Occupancy sits near 98%, and the trust continues to increase rents on renewals. With supply chains normalizing and e-commerce continuing to thrive, industrial real estate remains a solid long-term play. Dream's consistent income and exposure to multiple regions make it a strong diversifier. TRP Finally, there's TC Energy. Known for its vast network of natural gas and oil pipelines, TC Energy recently announced a plan to spin off its liquids pipelines business to focus more on natural gas and energy solutions. In its latest report, the company posted net income of $1.1 billion and comparable earnings of $1.26 per share. It reaffirmed its full-year 2025 financial outlook and capital investment plan, which is expected to exceed $8 billion. Even more impressive is its dividend history. TC Energy has increased its dividend for 24 consecutive years. At today's prices, the dividend yield is around 5.1%, which makes it one of the top payers among large-cap Canadian stocks. Despite higher debt levels, the company's stable cash flow from regulated assets supports its payout. Its shift toward more sustainable infrastructure should also help reduce risk over time. Bottom line If I had $250,000, I'd consider allocating evenly between these stocks within a TFSA. And because each of these companies operates in a different sector, the diversification helps manage risk. Together, this alone would bring in annual dividends of $12,027.30! COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT RY $179.00 465 $6.16 $2,862.40 Quarterly $83,235.00 $11.85 7,031 $0.70 $4,921.70 Monthly $83,116.35 TRP $66.75 1,248 $3.40 $4,243.20 Quarterly $83,238.00 At the end of the day, dividend investing isn't just about yield; it's about consistency and long-term dependability. These three stocks offer both. With the economy shifting, rates staying elevated, and volatility in the headlines every other day, a portfolio built around Royal Bank, Dream Industrial, and TC Energy can help you sleep a little better at night. That's the kind of financial freedom $250,000 should buy. The post How to Invest $250,000 in Canadian Dividend Stocks for $12,027 Each Year appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Yahoo
RBC tells customer she's responsible for $14K stolen from account in bank investigator scam
At first, Melissa Plett didn't think there was anything suspicious about a fraud alert call she got last month purportedly from her bank, the Royal Bank of Canada (RBC). Her phone's call display showed the number was RBC's. Plus, the caller used language she's heard before when dealing with her bank. "It was very, very, very well executed," said Plett, 44. "It's like they had the entire opening script memorized and rehearsed. There were just no red flags." The caller told Plett, who lives just outside Montreal, that someone in Vancouver was trying to steal $2,000 from her bank account. So she complied when he instructed her to log into her RBC banking app while he was on the phone with her, and followed instructions he said would safeguard her money. By the time the call was over, $14,510 had vanished from Plett's two RBC accounts, one personal and one for her marketing business. Plett said she found out she was scammed because the real RBC called her shortly after to report fraudulent activity in her account. She says she didn't share any personal information or codes with the fraudster. But when she asked RBC for a refund, Plett says the bank declined, and told her that she was responsible because she was active in her account when the money disappeared. "It's a lot of money," said Plett. "For you to have just a little bit of a savings account and it just to be gone, it's like, I'm going to cry now. You just feel helpless." Plett is one of many victims of the bank investigator scam, where fraudsters pose as bank investigators or other types of fraud investigators — typically by phone. The scammers tell victims one or more of their banking products has been compromised, and they need to take urgent and necessary action, such as sharing credit card numbers. In many cases, the fraudsters have personal information on the victim, such as their full name and the name of their bank. They also use a technique known as spoofing to make it appear as though they are calling from a number associated with the victim's bank. "If they have personal information, then it makes it believable," said Jeff Horncastle, outreach officer with the Canadian Anti-Fraud Centre. "Victims are seeing the number on the call display that they trust." The scam isn't new, but it's growing in sophistication, leading to bigger financial losses. For the first six months of this year, the Canadian Anti-Fraud Centre heard from 677 victims of the fraud, and recorded $11.7 million in financial losses — close to double the amount in the same period last year. Montreal police, who are investigating a criminal network involved in the scam, told CBC News they have identified at least 220 RBC customers who were victims of the fraud. Police estimate total losses of $1.5 million. RBC told CBC News the bank doesn't comment on ongoing police matters, but said that it worked closely with Montreal police during the investigation. When should victims be compensated? After RBC denied her refund, Plett says she escalated her case at the bank and was denied again, so she has now escalated it to the final level at RBC. "They can do better for the people that are trusting them with their money," she said. "I understand that I messed up, but I didn't know I was messing up." Victims of the bank investigator scam can seek reimbursement, but banks often hold the customer responsible and reject their request, or provide only a partial refund. WATCH | Scotiabank scam victim on the hook for $20K: Consumer advocate and lawyer Sylvie De Bellefeuille argues banks should be obligated to provide full compensation. "People were tricked," she said. "They shouldn't be held liable. We have to take into consideration, these kind of scams are very elaborate strategies." De Bellefeuille and her organization, Option Consommateurs, are currently helping 14 victims of the bank investigator scam — all seniors in Quebec — fight for reimbursement from their banks. She says 12 of the victims are RBC customers. "[It] really has a bad effect on people," De Bellefeuille said, adding that some of the victims have lost part of their retirement savings. Victims of credit card fraud are protected under federal law, but banks can argue the rules don't apply if they determine the customer "demonstrated gross negligence." And there are currently no legislative requirements for banks to reimburse customers for unauthorized banking transactions, Finance Canada told CBC News. De Bellefeuille says the federal government needs to beef up regulations to ensure victims of this type of scam get their money back. "People feel victimized [the] first time because they've been a victim of fraud, but also a second time because, afterwards, the banks basically said, 'Well, sorry, it was your fault.'" RBC responds RBC spokesperson Cheryl Brean didn't answer questions about Plett's case, including questions about why the bank declined to provide a refund. She did say the bank takes customer concerns seriously and deals with its clients directly. Brean also said that RBC works hard to prevent, detect and investigate fraud, which includes collaborating with police and other entities on the matter. "Financial crimes are increasingly sophisticated," she wrote in an email. On its website, RBC guarantees customers a full refund for digital transactions they didn't make or approve, if they show they've "been a victim of fraud, theft or have been coerced by trickery, force or intimidation." Plett says because she learned she had been scammed from RBC, the bank knows she's a victim of fraud. She says when the real RBC called shortly after the scam call, the bank told her that a fraudster had made two wire transfers totalling $5,410 from her business account. "They're the ones that called me and said there's been fraudulent activity in your account. So then you would think, 'Oh good, they're going to help me.' " Plett's bank records, seen by CBC News, show that money was also taken from her mortgage line of credit. On top of losing $14,510, RBC charged her $35 in fees for the two wire transfers. Hours after CBC News sent RBC a media inquiry about Plett's case, she said the bank called to tell her it's investigating the matter. What is Ottawa doing? Last year, the federal government held consultations on proposed changes to strengthen federal protections for bank customers. Proposals include a requirement for banks to collect and report data on scams targeting customers, and provide fraud victims reimbursement beyond a yet to be determined amount, regardless of how their funds were accessed. The maximum amount card fraud victims are liable for is generally capped at $50. The federal Department of Finance had no update for CBC News on when the proposals could take effect. De Bellefeuille says change needs to come soon, because the bank investigator scam does not appear to be letting up. "Lots of people are losing money." If you get a fraud alert call from your bank, experts advise that you should hang up and call the bank back directly using the number on their official website or your bank card to ensure it was actually your bank that called. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
