Why a Bet on This Big Bank Is Still a Great Play

One of the top 10 largest banks in the world by some measures, Royal Bank of Canada (TSX:RY)(NYSE:RY) remains one of the premier financials plays globally for investors looking to take advantage of Canada’s relatively high economic growth rate of late.

After posting stronger than expected earnings this past week, investors have continued to pile their money into Royal Bank shares as a relatively safe place to invest in financials in a post-recession world.

Often touted as one of the best banks in terms of operations, Royal Bank has a dominant position in the Canadian wealth management business, with its retail and commercial banking operations providing investors with solid and diversified top and bottom line results year after year.

Royal Bank has a number of key operations around the world, making this bank one of the best diversified among its peers in terms of Canadian vs. non-Canadian exposure.

The bank’s dividend of approximately 3.6% is par for the course in terms of its peers, however the ability of the company’s management team to grow dividend distributions at approximately 6% per year since 2007 makes this dividend especially valuable to investors looking for long-term income growth.

Royal Bank’s strong and growing dividend, combined with its diversified operations and dominant market position domestically, make this bank an excellent long-term play for income-focused investors and growth investors alike.

Invest wisely, my friends.