Royal Bank of Canada's 127% Five-Year Return Tops Market Average.

Royal Bank of Canada (TSE:RY) has seen a 127% return over the past five years, outperforming the market return of 63%. However, the more recent gains have been less impressive, with shareholders gaining just 27%. The company's EPS has grown at a 10% annual rate over the past five years, while the share price has increased by 13%. The TSR of 127% over the past five years includes the value of dividends, which has contributed significantly to the overall return.

Royal Bank of Canada (TSE:RY) has experienced a significant return of 127% over the past five years, outperforming the broader market's return of 63%. However, the company's recent performance has been less impressive, with shareholders gaining only 27% in the more recent period. The company's earnings per share (EPS) have grown at an annual rate of 10% over the past five years, while the share price has increased by 13%. This growth includes the value of dividends, which have contributed significantly to the overall return [1].

Despite these positive indicators, RBC faces several challenges. The bank's exposure to the Canadian housing market and the potential for constrained borrowing by consumers pose risks to loan and revenue growth, as well as increased credit risk [1]. Additionally, RBC's recent earnings report showed a miss of analysts' expectations, with revenues for the quarter falling short of consensus estimates [3].

PNC Financial Services Group Inc. recently increased its stake in RBC, demonstrating confidence in the bank's long-term prospects. The institutional investor now holds 86,847 shares of RBC, valued at approximately $9.79 million, reflecting an annualized yield of 3.4% from the bank's dividend [3].

Looking ahead, RBC's global scope in capital markets and wealth management provides a powerful and diversified stream of revenue, which could lead to outsize fee income compared to peers [1]. However, the bank's performance remains subject to the broader economic conditions and regulatory environment.

References:
[1] https://www.morningstar.com/stocks/xnys/ry/quote
[2] https://www.marketbeat.com/instant-alerts/royal-bank-of-canada-issues-pessimistic-forecast-for-owens-corning-nyseoc-stock-price-2025-08-07/
[3] https://www.marketbeat.com/instant-alerts/filing-pnc-financial-services-group-inc-boosts-holdings-in-royal-bank-of-canada-nysery-2025-08-06/