5 Canadian Stocks to Buy Amid Rate Hikes

2. Royal Bank of Canada (NYSE:RY)

Number of Hedge Fund Holders: 21

Royal Bank of Canada (NYSE:RY) is a Toronto-based financial services company that operates through Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets segments. The company’s Q1 EPS of $2.34 beat market estimates by $0.24. 

On May 26, Royal Bank of Canada (NYSE:RY) announced a C$1.28 per share quarterly dividend, a 6.7% increase from its prior dividend of C$1.20. The dividend is distributable on August 24, to shareholders of record on July 26. The company’s dividend yield on June 10 stood at 3.98%. 

Argus analyst Stephen Biggar on June 6 raised the price target on Royal Bank of Canada (NYSE:RY) to $125 from $121 and kept a Buy rating on the shares after its Q2 results that reflected higher net interest income for the fourth consecutive quarter. According to the analyst, Royal Bank of Canada (NYSE:RY) remains in a solid competitive position, with a rising market share in the Canadian banking space and a strong wealth management franchise. He added that he sees continued positive comparisons owing to robust loan volumes and rising interest rates.

According to Insider Monkey’s data, 21 hedge funds were bullish on Royal Bank of Canada (NYSE:RY) at the end of Q1, up from 15 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading shareholder of the company, with about 5.8 million shares worth $638.4 million.