Royal Bank of Canada (TSX:RY)(NYSE:RY) is proving to investors why it's a solid buy, even in turbulent times, as the top bank recently posted record-breaking numbers. Despite recent flat stock performance before earnings, the bank's long-term growth and generous dividend yield highlight its appeal as a top investment option.
Last week, it released its first-quarter numbers for fiscal 2026, for the period ending Jan. 31. It posted net income of $5.8 billion, which was a 13% increase from the previous year. This growth was fueled by higher results in wealth management, personal banking, commercial banking, and capital markets, offsetting lower results in its insurance division. The bank's financial foundation remains exceptionally strong.
RBC still looks fairly unconcerned about the state of the economy, as total provisions for credit losses rose slightly by $40 million to $1.1 billion. And the overall provision for credit losses on loans ratio decreased by one basis point to 41 basis points.
Meanwhile, its common equity tier 1 ratio of 13.7% continues to support solid loan volume growth while funding $3.3 billion in shareholder returns through dividends and share buybacks.
Although the stock didn't get a big jump after the strong earnings numbers, it's been doing well for a while now. Over the past five years, shares of RBC have more than doubled in value, reflecting its underlying operational strength.
It's a great option for dividend investors as it yields 2.8%, which is above average. And investors don't need to worry about the safety of that payout.
Given its consistent dividend history, a high return on equity, and a dominant market position, Royal Bank stock can be an ideal investment to put into portfolio and simply hang on to for the long haul.
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