These four banks have bright outlooks, too

Article Excerpt

While TD (see page 1) is our favourite for new buying, we also like the outlook for Canada’s other big banks. We advise all Canadian investors to hold at least three of them. Like TD, the remaining four banks trade at attractive multiples to their improved earnings; each should also continue to increase its dividend. ROYAL BANK OF CANADA $101 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 1.5 billion; Market cap: $151.5 billion; Price-to-sales: 3.9; Dividend yield: 3.6%; TSINetwork Rating: Above Average; www.rbc.com) is Canada’s secondlargest bank with assets of $1.2 trillion. Royal continues to profit from its November 2015 purchase of Los Angeles-based City National Bank. That firm lends to wealthy individuals and businesses in the entertainment, technology and health-care industries. The bank paid $5.5 billion U.S. in cash and shares for City National. In its fiscal 2017 fourth quarter, ended October 31, 2017, Royal’s overall earnings rose 11.6%, to $2.8 billion from $2.5 billion a..