royal bank
Most U.S. markets have risen lately, while Canada’s resource-heavy Toronto Stock Exchange has lagged. But as always, both remain subject to unexpected downturns. Even so, the long-term outlook is for higher stock prices.
One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio.
ETFs trade on stock exchanges, just like stocks....
One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio.
ETFs trade on stock exchanges, just like stocks....
ROYAL BANK OF CANADA $63 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.5 billion; Market cap: $94.5 billion; Price-to-sales ratio: 2.4; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.rbc.com) earned $2.1 billion, or $1.36 a share, in the three months ended January 31, 2013. That’s up 11.6% from $1.9 billion, or $1.22 a share, a year earlier. Revenue rose 4.4%, to $7.9 billion from $7.6 billion. Royal set aside $349 million to cover potential loan defaults, up 30.7% from $267 million. That’s mainly due to extra provisions on specific loans at its securities-trading division.
Low interest rates continue to spur loan demand at Royal’s retail banking operations in Canada, the U.S. and the Caribbean. Strong results from the bank’s trading and wealth management divisions also contributed to the higher results.
Royal also raised its quarterly dividend by 5.0%, to $0.63 a share from $0.60. The new annual rate of $2.52 yields 4.0%.
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Low interest rates continue to spur loan demand at Royal’s retail banking operations in Canada, the U.S. and the Caribbean. Strong results from the bank’s trading and wealth management divisions also contributed to the higher results.
Royal also raised its quarterly dividend by 5.0%, to $0.63 a share from $0.60. The new annual rate of $2.52 yields 4.0%.
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ROYAL BANK OF CANADA $63 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.5 billion; Market cap: $94.5 billion; Price-to-sales ratio: 2.4; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.rbc.com) earned $2.1 billion, or $1.36 a share, in the three months ended January 31, 2013....
ISHARES DOW JONES CANADA SELECT DIVIDEND INDEX FUND $22.24 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highest-yielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of its assets. The fund’s MER is 0.50%. It yields 4.2%.
The fund’s top holdings are CIBC, 6.7%; Bonterra Energy, 6.0%; National Bank, 6.0%; TD Bank, 5.5%; Bank of Montreal, 5.4%; Royal Bank, 4.4%; Telus Corp., 4.4%; Bank of Nova Scotia, 4.1%; BCE Inc., 4.1%; and IGM Financial, 3.9%.
The fund holds 51.5% of its assets in financial stocks. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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The fund’s top holdings are CIBC, 6.7%; Bonterra Energy, 6.0%; National Bank, 6.0%; TD Bank, 5.5%; Bank of Montreal, 5.4%; Royal Bank, 4.4%; Telus Corp., 4.4%; Bank of Nova Scotia, 4.1%; BCE Inc., 4.1%; and IGM Financial, 3.9%.
The fund holds 51.5% of its assets in financial stocks. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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ISHARES S&P/TSX 60 INDEX FUND $18.50 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.
The index mostly consists of high-quality companies. However, as the fund must ensure that all sectors are represented, it holds a few stocks we wouldn’t include.
The index’s top holdings are Royal Bank, 7.8%; TD Bank, 6.7%; Bank of Nova Scotia, 6.0%; Suncor Energy, 4.6%; Bank of Montreal, 3.6%; CN Railway, 3.6%; Potash Corp., 3.3%; Enbridge, 3.1%; Trans- Canada Corp., 3.0%; BCE Inc., 3.0%; CIBC, 2.9%; Canadian Natural Resources, 2.9%; Barrick Gold, 2.9%; Goldcorp, 2.6%; Manulife Financial, 2.3%; Cenovus Energy, 2.2%; and Telus Corp., 1.9%.
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The index mostly consists of high-quality companies. However, as the fund must ensure that all sectors are represented, it holds a few stocks we wouldn’t include.
The index’s top holdings are Royal Bank, 7.8%; TD Bank, 6.7%; Bank of Nova Scotia, 6.0%; Suncor Energy, 4.6%; Bank of Montreal, 3.6%; CN Railway, 3.6%; Potash Corp., 3.3%; Enbridge, 3.1%; Trans- Canada Corp., 3.0%; BCE Inc., 3.0%; CIBC, 2.9%; Canadian Natural Resources, 2.9%; Barrick Gold, 2.9%; Goldcorp, 2.6%; Manulife Financial, 2.3%; Cenovus Energy, 2.2%; and Telus Corp., 1.9%.
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TRANSCANADA CORP., $46.80, Toronto symbol TRP, hopes the U.S. State Department will approve its proposed Keystone XL pipeline in the next few months. Nebraska’s governor recently approved the company’s plan to reroute the line around environmentally sensitive areas of the state. When completed, Keystone XL would pump oil from Alberta to the U.S. Gulf Coast. The entire project would cost $5.3 billion U.S. It could begin operating in late 2014 or early 2015. So far, TransCanada has invested $1.8 billion U.S. in Keystone XL. Meanwhile, TransCanada’s earnings fell 14.7% in 2012, to $1.3 billion, or $1.89 a share. These figures exclude unusual items, such as gains and losses on contracts the company uses to lock in prices for natural gas and electricity. On that basis, the latest earnings missed the consensus estimate of $1.98 a share. In 2011, it earned $1.6 billion, or $2.22 a share....
Canadian Western Bank, $31.46, symbol CWB on Toronto (Shares outstanding: 78.8 million; Market cap: $2.5 billion; www.cwbank.com), offers business and personal banking services across the four western provinces. It’s the biggest Canadian bank headquartered in western Canada and the country’s eighth-largest. The bank’s wholly owned subsidiaries include National Leasing Group Inc., Canadian Western Trust Company, Valiant Trust Company, Canadian Direct Insurance Inc., Adroit Investment Management Ltd. and Canadian Western Financial Ltd. In the three months ended October 31, 2012, Canadian Western Bank’s earnings rose 19.8%, to $43.0 million from $35.9 million a year earlier. Earnings per share rose 14.6%, to $0.55 from $0.48, on more shares outstanding. Net interest income rose 8.0%, to $111.3 million from $103.1 million. Other income rose 47.8%, to $19.9 million from $13.5 million....
Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, we feel the long-term outlook is for higher stock prices. One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio. ETFs trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and online. You must pay brokerage commissions to buy and sell ETFs, but their low management fees still give them a cost advantage over most mutual funds....
Most stock markets have risen lately. But as always, they remain subject to unexpected downturns. Even so, the long-term outlook is for higher stock prices.
One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio.
ETFs trade on stock exchanges, just like stocks....
One way to profit from rising markets is to add exchange traded funds (ETFs) that track major stock indexes to your portfolio.
ETFs trade on stock exchanges, just like stocks....
ROYAL BANK OF CANADA $61 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.5 billion; Market cap:$91.5 billion; Price-to-sales ratio: 2.4; Dividend yield:3.9%; TSI Network Rating: Above Average;www.rbc.com) is Canada’s largest bank by market cap. It earned a record $7.6 billion, or $4.96 a share, in its 2012 fiscal year, which ended October 31,2012. That’s up 8.9% from $7.0 billion, or $4.55 a share, in fiscal 2011. Revenue rose 7.7%, to $29.8billion from $27.6 billion.
The bank continues to report strong loan demand at its retail banking operations in Canada, the U.S. and the Caribbean. This division’s earnings, which accounted for 56% of Royal’s total, rose 9.3%.Earnings from securities trading (22% of overall earnings) rose 22.4% due to higher income from bond trading. The insurance division’s earnings (10%) climbed19.0% due to fewer claims.
These gains offset a 5.9%earnings decline at Royal’s wealth management business(11% of the total). Earnings at the investor and treasury services division (1%) fell 63.0%.That’s because of a loss related to the purchase of 50% of joint venture that the bank didn’t already own. Without this loss, this business’s earnings would have risen by 30%.
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The bank continues to report strong loan demand at its retail banking operations in Canada, the U.S. and the Caribbean. This division’s earnings, which accounted for 56% of Royal’s total, rose 9.3%.Earnings from securities trading (22% of overall earnings) rose 22.4% due to higher income from bond trading. The insurance division’s earnings (10%) climbed19.0% due to fewer claims.
These gains offset a 5.9%earnings decline at Royal’s wealth management business(11% of the total). Earnings at the investor and treasury services division (1%) fell 63.0%.That’s because of a loss related to the purchase of 50% of joint venture that the bank didn’t already own. Without this loss, this business’s earnings would have risen by 30%.
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