This Dividend Stock Deserves the ‘Royal’ Treatment

• Royal Bank of Canada (RY) is Canada’s largest bank and is showing strong technical momentum.

• RY gained 34% over the past year and hit 17 new highs last month.

• Consensus analyst ratings are overwhelmingly positive, with multiple “strong buy” opinions and price targets as high as $269.

• Revenue and earnings are expected to grow steadily in 2024 and 2025, but Morningstar warns that RY is 35% overvalued after its recent run.

Valued at $234 billion, Royal Bank of Canada (RY) operates under the flagship RBC brand. It is Canada’s largest bank measured by assets and market capitalization, and one of North America’s leading diversified financial services companies.

It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services globally.

I found today’s Chart of the Day using Barchart’s powerful selection features to select stocks with the highest technical Buy signals; current momentum superior in both strength and direction; and a “buy” signal from Trend Seeker. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RY checks those boxes. Since Trend Seeker signaled a new “buy” on October 23, the stock has gained 13.36%.

Editor’s note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. Therefore, the indicator numbers shown below may not match what you see live on the Barchart.com website when you read this report. These technical indicators form Barchart’s opinion on a particular stock.

Royal Bank of Canada hit an all-time high of $167.91 on December 12.

• RY has a weighted alpha of +46.13.

• Royal Bank of Canada has a 100% “Buy” opinion on Barchart.

• The stock gained 34.37% over the past year.

• RY has its Trend Seeker “Buy” signal intact.

• The stock recently traded at $166.73 with a 50-day moving average of $150.86.

• Royal Bank of Canada hit 17 new highs and gained 14.06% in the last month.

• The Relative Strength Index (RSI) is at 78.78.

• There is a technical support level around $165.88.

• Market cap of $234 billion.

• Price-earnings ratio of 16.1x.

• 2.85% Dividend yield

• Revenue is projected to grow 4.71% this year and another 4.93% next year.

• Earnings are estimated to rise 8.37% this year and an additional 9.76% next year.

It seems that Wall Street and individual investors like this stock.

• Wall Street analysts tracked by Barchart have given 10 “Strong Buy”, 2 “Moderate Buy” and 3 “Hold” opinions on the stock with price targets between $152 and $176.

• Value Line rates it “Average” with price targets between $203 and $269.

• CFRA’s MarketScope Advisor rates it a “Strong Buy” with a $200 price target.

• Morningstar believes that with the stock’s recent rise, it is 35% overvalued.

• 1,342 investors following the Motley Fool stock believe it will outperform the market, while 133 believe it will not.

• 62,520 investors are following the stock on Searching Alpha, which rates it a “Strong Buy.”

RBC is well diversified and financially stable with strong projections for revenue and earnings growth.

Today’s chart of the day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional Disclosure: The bar chart of the day highlights stocks that are experiencing exceptional appreciation from current prices. They are not intended to be purchase recommendations, as these stocks are extremely volatile and speculative. If you decide to add one of these stocks to your investment portfolio, we strongly recommend that you follow a default diversification and trailing stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com