Should I buy RBC stock in 2025?

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At HelloSafe, our expert has been monitoring RBC's performance for more than three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the top investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by RBC.

What is RBC?

How much is RBC stock?

The price of RBC stock is rising this week. As of today, RY trades at $163.01 CAD, showing a positive change of +1.45% over the past 24 hours and up +4.2% over the last week. RBC’s market capitalization stands at $234.35 billion CAD, with a three-month average daily volume of 1.33 million shares. The current P/E ratio is 13.33, the dividend yield is an attractive 3.56%, and the stock’s beta is 0.70, signaling lower volatility than the broader market. Investors should note that RBC continues to demonstrate a blend of stability and steady growth, making it a compelling option despite modest risk levels.

Our full analysis on RBC stock

After a thorough review of Royal Bank of Canada’s (RBC, TSX: RY) latest financial results and stock performance over the past three years, as well as an evaluation of RBC’s position relative to competitors, macroeconomic trends, technical and fundamental indicators, our analysis synthesizes a broad array of inputs through proprietary algorithms. RBC’s stock continues to attract renewed attention from investors navigating Canada’s dynamic financial sector, raising a pertinent question for the months ahead: why might RBC stock once again become a strategic entry point into the banking and diversified financial services space in 2025?

Recent Performance and Market Context

RBC’s stock has demonstrated remarkable resilience and upward trajectory within the past year, ascending close to its 52-week high with a current price of $118.06 USD / $163.01 CAD (as of April 30, 2025). After rebounding from a 52-week low of $96.52 USD, the shares have outperformed most Canadian financial peers, reflecting solid investor confidence. These gains coincide with a period of robust Canadian GDP growth, a stabilization of interest rates by the Bank of Canada, and renewed optimism in consumer and business lending.

• Record Q1 2025 Earnings: RBC reported net income of $5.1 billion CAD (up 43% year-over-year) and a 16.8% ROE, far exceeding sector norms.
• HSBC Bank Canada Acquisition: Integration enhanced earnings and brought immediate accretive impact of $214 million CAD to net income.
• Sector-wide Stability: Canadian banks benefit from strong regulatory frameworks, high capital requirements, and an improving credit landscape, supporting both share-price appreciation and dividend sustainability.

This confluence of macroeconomic stability and management execution places RBC at the forefront among large-cap Canadian banks, elevating its role as a core holding for exposure to the health of the country’s financial sector.

Technical Analysis

A clear set of bullish technical signals reinforces the argument for a timely entry:

• Moving Averages: RBC is trading decisively above all key simple moving averages—5-day ($117.53), 20-day ($113.57), 50-day ($114.02), 100-day ($116.90), and 200-day ($116.50). This alignment typically signals strong underlying momentum and trend strength, especially given the convergence above longer-term averages.
• RSI, MACD, and Additional Oscillators: The 14-day RSI at 61.48 suggests positive but not overextended conditions, allowing scope for further upside before overbought levels are reached. MACD remains positive, and CCI and Williams %R are entering bullish territory consistent with an emerging uptrend.
• Support and Resistance: Well-defined support at $115.78–$117.43 and resistance at $119.40–$121.08 create a constructive near-term trading band. The relative proximity of support levels to the current price, combined with moderate trend strength (ADX 13.12), signals an environment conducive to accumulation by investors seeking technical confirmation.

Collectively, these indicators highlight a stock entering an auspicious technical phase, with both momentum and volume favoring a continued bullish bias in the short to intermediate term.

Fundamental Analysis

RBC’s core financials underscore the compelling foundations for its current and prospective positioning:

• Revenue Growth and Profitability: Q1 2025 results revealed revenue growth and profit margins outpacing most North American banks: net income up 43%, with ROE at 16.8%—indicative of operational efficiency and prudent risk management.
• Attractive Valuation: With a trailing P/E of 13.33 and a forward P/E of 12.33, RBC is trading at a noticeable discount to its five-year historical averages, and below most sector peers when adjusted for projected earnings growth and dividend yield. The current price-to-book (1.91) and price-to-sales (3.90) ratios also appear justified considering the bank’s dominant market share and earnings power.
• Sustainable Dividend Growth: The 3.56% yield, supported by robust capital ratios (CET1 at 13.2%), further enhances total return potential, especially relevant for Canadian investors benefiting from tax-advantaged dividend treatment.
• Strategic Expansion and Innovation: The HSBC Canada acquisition has fortified market share and broadened the deposit base. Ongoing investments in technology, including advanced digital banking capabilities and customer-facing innovations, position RBC as a leader in future-ready financial services.

RBC’s unique blend of scale, brand loyalty, cross-segment diversification, and balance sheet strength firmly anchors its blue-chip status—a key differentiator in today’s competitive landscape.

Volume and Liquidity

Superior liquidity is another pillar of the RBC investment thesis:

• High Trading Volume: With a daily average exceeding 1.33 million shares on the NYSE, RBC maintains a substantial float. This not only ensures efficient price discovery but also reflects broad institutional and retail participation—a hallmark of market confidence.
• Dynamic Valuation Environment: Wide ownership and ample liquidity enable responsive valuation adjustments in line with new information. The bank’s size and visibility guarantee its continued inclusion in major indices and ETFs, attracting both direct and passive investment flows.

For investors, this translates to the ability to implement a wide range of strategies without concerns around illiquidity, slippage, or outsized bid-ask spreads.

Catalysts and Positive Outlook

RBC’s forward-looking prospects are shaped by several catalysts:

• Growth in Wealth and Commercial Banking: Rising fee-based revenues and cross-selling opportunities within wealth management and commercial banking are expected to drive mid- to long-term earnings growth.
• Digital Transformation: Extensive investment in AI-driven customer engagement, digital onboarding, and cybersecurity fuels differentiation and margin expansion.
• Integration of HSBC Canada: Synergies from the acquisition, both operational and financial, are anticipated to materialize further in the coming quarters, unlocking new growth vectors.
• ESG Leadership: Heightened focus on sustainable finance and robust governance attracts institutional capital, responding to evolving investor priorities.
• Stable Regulatory Context: The Canadian banking system continues to benefit from prudent oversight, limiting systemic risks and underpinning long-term earnings predictability.
• Shareholder Returns: Ongoing capital return via growing dividends and potential buybacks, supported by excess capital, further elevates RBC’s profile among income-oriented and total-return investors.

These elements combine to create a powerful narrative for continued outperformance relative to North American financial peers.

Investment Strategies

RBC’s current setup lends itself well to multiple time horizons and portfolio strategies:

• Short-Term: The stock is exhibiting a classic technical breakout scenario, with price above all significant moving averages and recent volume surges. Active traders could capitalize on moves toward near-term resistance at $121.08, while stop-losses below $117.43 offer disciplined risk control.
• Medium-Term: For swing traders and tactical investors, upcoming post-acquisition synergies, expected continued EPS growth, and robust wealth management flows present attractive re-rating opportunities. Initiating positions near current levels, ahead of further integration updates or dividend increases, seems well-timed.
• Long-Term: RBC’s proven resilience, durable moat, and expanding earnings base encourage a buy-and-hold approach, particularly for those seeking tax-advantaged yields, principal stability, and steady appreciation. Entry at technical lows or during brief consolidations can enhance returns, but even at current valuations, the risk/reward profile appears skewed favorably.

Whether deploying lump-sum allocations or using a dollar-cost averaging approach, RBC is structurally suited to anchor Canadian and global portfolios alike.

Is It the Right Time to Buy RBC?

Summing up, the essential strengths driving renewed interest in Royal Bank of Canada include:

• Record financial results and double-digit earnings growth
• Sector-leading ROE and fortified capital foundation
• Attractive, sustainable dividend with favorable tax treatment
• Defensive, diversified business lines complemented by growth investments
• Broad-based liquidity and technical signals that hint at further upside
• Multiple value-creating catalysts—from M&A to digital leadership—on the immediate horizon

In a context where both macroeconomic fundamentals and market positioning converge, RBC’s stock seems to represent an excellent opportunity for investors seeking premium exposure to the best of Canada’s financial sector. The current environment—characterized by resilient earnings, strategic expansion, and emerging technical momentum—may well mark the onset of a new bullish phase for the shares.

As the landscape evolves, RBC’s combination of stability, innovation, and consistent capital returns positions it as a compelling candidate for renewed portfolio consideration, with all signs pointing to attractive potential ahead for patient and strategic investors.

How to buy RBC stock in Canada?

Buying shares of Royal Bank of Canada (RBC) online is simple and secure when you go through a regulated broker—your funds and investments are protected by Canadian regulations. There are two main ways to access RBC stock: spot (cash) buying, which gives you direct ownership of shares, or trading Contracts for Difference (CFDs), which allow you to speculate on price movements using leverage. Each approach has distinct features and risks. To help you make the right choice, you'll find a broker comparison further down this page.

Spot Buying

Spot (cash) buying means purchasing actual RBC shares on the stock market—typically via the Toronto Stock Exchange (TSX) under the symbol RY.TO. You become a shareholder, eligible to collect dividends and benefit from potential growth in share value. Canadian online brokers usually charge a fixed commission for each trade, commonly around $5–$10 per order in Canadian dollars.

Important information

Example:
Suppose the RBC share price is $163.01 CAD. With a $1,000 investment, after accounting for a $5 brokerage fee, you could buy approximately 6 shares ($1,000 – $5 = $995 ÷ $163.01 ≈ 6 shares).

✔️ Gain scenario:
If the share price rises by 10%, your 6 shares are now worth $1,079.46 ($163.01 × 1.10 × 6).
Result: That's a gross gain of about $100, or +10% on your initial investment.

Trading via CFD

Trading RBC via CFDs (Contracts for Difference) lets you speculate on price changes without owning the underlying shares. You can go long (buy) or short (sell), and use leverage to control a larger position with a smaller upfront deposit. This method involves fees such as the spread (difference between buy/sell prices) and overnight financing charges if you hold positions beyond the trading day.

Important information

Example:
You open a CFD position on RBC shares with $1,000 and use 5x leverage, giving you exposure to $5,000 worth of stock.
✔️ Gain scenario:
If the RBC stock rises by 8%, your leveraged position gains 8% × 5 = 40%.
Result: That's a $400 profit on your $1,000 margin (excluding fees), illustrating the power—and risks—of leverage.

Final Advice

Before making any investment, it’s crucial to compare the fees, features, and regulatory protections offered by different brokers. Your choice between spot buying and CFD trading should reflect your personal investment goals: direct ownership and dividends, or active trading with leverage. For more details and to find a broker that suits your needs, consult our comparison table lower on the page. Always ensure to invest within your risk tolerance and stay informed.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying RBC stock

The latest news about RBC

Royal Bank of Canada’s Q1 2025 earnings surged 43% year-over-year, driven by growth across all core segments. The bank reported record net income of $5.1 billion CAD and diluted EPS of $3.54 CAD, with each business line—Personal & Commercial Banking, Wealth Management, and Capital Markets—contributing positively. Notably, Wealth Management experienced higher fee-based revenue, a direct result of market appreciation and healthy net sales, underscoring RBC’s resilience and the effectiveness of its diversified model. The strong gains also reflect successful integration of HSBC Bank Canada, which alone contributed $214 million in net income for the quarter. These results position RBC as a sector leader in Canada, reinforcing its central role in the country’s financial system and sending a constructive signal to investors seeking domestic stability and upside potential.

RBC’s capital position remains robust, with a CET1 ratio of 13.2%, well above Canadian regulatory minimums. This substantial capital buffer not only ensures regulatory compliance but also provides flexibility for continuing growth initiatives, capital deployment, and sustained shareholder returns. The figure is especially significant in the context of heightened global economic volatility, offering assurance to Canadian stakeholders about the bank’s capacity to absorb potential shocks and maintain consistent dividend payments. RBC’s high capital ratio further solidifies its standing as the largest and one of the most financially secure banks in the Canadian market.

Technical indicators signal positive momentum, with the share price currently above all major moving averages. As of April 30, 2025, RBC’s TSX-listed shares are trading at $163.01 CAD, above its 5-, 20-, 50-, 100-, and 200-day simple moving averages, indicating a strong buy signal among technical analysts. The Relative Strength Index at 61.48 is within neutral territory, suggesting the stock is neither overbought nor oversold, while the price approaches key resistance levels, pointing to continued investor confidence. This technical setup—corroborated by significant trading volume and robust liquidity on Canadian markets—illustrates sustained buyer interest and underpins positive short-term market sentiment.

RBC continues to invest ambitiously in digital banking and innovation, strengthening its competitive advantage in Canada. Recent strategic initiatives emphasize expanding digital platforms and partnerships, such as enhancing customer loyalty programs and technology infrastructure upgrades. These investments are directly benefiting Canadian clients, driving higher customer engagement, and attracting new market segments. RBC’s leadership in digital transformation not only improves operational efficiency but also supports its long-term growth strategy within the Canadian marketplace, contributing to its appeal for forward-looking investors focused on innovative financial services.

The bank’s dividend yield stands at a healthy 3.56%, with a well-established history of consistent increases. The forward annual dividend of $4.27 USD, combined with favorable Canadian tax treatment for eligible accounts such as RRSPs and TFSAs, highlights RBC’s strong commitment to shareholder returns. For Canada-based investors, this reliable income stream, supported by the bank’s historical pattern of raising dividends, offers a compelling reason to consider the stock for both income and growth portfolios. The above-average yield further distinguishes RBC from peers, reinforcing its status as a cornerstone holding for Canadian retail and institutional investors alike.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.