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Technology Should Royal Bank of Canada (TSX:RY) Stock Be in Your RRSP in 2020?

09:50  06 december  2019
09:50  06 december  2019 Source:   fool.com

Young Investors: Should Bank of Montreal (TSX:BMO) Stock Be in Your RRSP?

  Young Investors: Should Bank of Montreal (TSX:BMO) Stock Be in Your RRSP? Dividend stocks have long-been popular picks for buy-and-hold RRSP investors.The RRSP is a great option for setting cash aside for the golden years. The contributions made to the plan can be used to reduce taxable income, effectively cutting the net out-of-pocket investment. Depending on your tax bracket, the reduction could have a meaningful impact on the amount you would have paid the CRA.

Royal Bank raised its dividend twice in 2019, giving investors a share of the profits every year since 1870. Is one more attractive? Suncor and Royal Bank should both be solid buy-and-hold picks for a self-directed RRSP portfolio. 3 Reasons Why Aurora Cannabis ( TSX :ACB) Stock Is a Steal at .

Canadians are using self-directed Registered Retirement Savings Plans to invest their hard-earned money in top-quality stocks with the goal of building Both Royal Bank and CIBC should be be solid candidates for a dividend-focused RRSP . If you want the safer choice, go with Canada ’s largest bank .

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Canadian bank stocks often come up as top picks to anchor a balanced RRSP portfolio.

The group has performed well over the long haul and bounced back to new record highs in the wake of the Great Recession. A surge in home prices over the past decade has driven much of the profit growth, and investors are wondering how long that party can last.

In addition, the trade war between China and the United States is putting pressure on the global economy. If the tariffs are extended and economic activity slows in a meaningful way, the Canadian economy could be in for a rough ride.

RRSP investors: Is Bank of Nova Scotia (TSX:BNS) stock a buy right now?

  RRSP investors: Is Bank of Nova Scotia (TSX:BNS) stock a buy right now? Bank stocks are popular RRSP picks. Should that continue to be the case?Let’s take a look at Bank of Nova Scotia(TSX:BNS)(NYSE:BNS) to see if it deserves to be on your RRSP buy list.

Although Royal Bank of Canada certainly looks good to me, I would like it more if insiders were buying up shares. If you like to see insider buying, too This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock , and does not take account of your

(Bloomberg) -- Turkey’s banking regulator eased measures on how banks classify credit to once-troubled companies, helping lenders to potentially avoid adding more non-performing loans to their books, according to people familiar with the matter.The Banking Regulation and Supervision Agency

This would put pressure on the banks.

Let’s take a look at Royal Bank of Canada(TSX:RY)(NYSE:RY) to see if it deserves to be on your buy list for a self-directed RRSP heading into 2020.

Earnings

Royal Bank just reported fiscal Q4 and full-year 2019 results. Adjusted earnings for the 12-month period rose 4% to $12.9 billion. Revenue was a record $46 billion in the year, up 8%. The strong revenue growth was led by a gain of 11% in wealth management and a 6% increase in the personal and commercial banking segment.

Return on equity was a solid 16.8%. Royal Bank finished the fiscal year with a high CET1 ratio of 12.1%. This is important, as it indicates the bank’s ability to ride out tough times.

Overall, Royal Bank had a good year, but the Q4 numbers came in weaker than consensus estimates by analysts who cover the bank. Royal Bank reported net income of $3.2 billion in the fiscal fourth quarter, or an adjusted diluted $2.22 per share. The market thought that number would be closer to $2.28 per share.

Canada Revenue Agency: 1 RRSP Mistake Will Leave You With a Huge Tax Bill

  Canada Revenue Agency: 1 RRSP Mistake Will Leave You With a Huge Tax Bill As amazing as your RRSP can be for your retirement, there is one crucial mistake Canadians should avoid and invest in Royal Bank of Canada stock.When it comes to retirement savings, Canadians have several options to bolster their nest eggs. One of the most tax-advantaged ways to save a substantial sum of money for your retirement is the Registered Retirement Savings Plan (RRSP). This savings plan allows you to control how you invest your money, which you can use later on after your retirement.

Royal Bank of Canada FREE - On Google Play. Royal Bank of Canada . GET — On the App Store. View. Skip to main content. Royal Bank . Boost My RRSP Savings .

Canada Stock Market up on Solid Bank Revenue Growth. The RRSP is a great option for setting cash aside for the golden years. The contributions made to the plan can be used to Dividend stocks have long- been popular picks for buy-and-hold RRSP investors, which should continue to be the case.

Provisions for credit losses on impaired loans increased across the three main business segments. This could be an indication that consumers and companies are starting to feel the pinch of high debt levels and economic uncertainty.

Dividends

Royal Bank raised the dividend twice in 2019. The payout ratio for the year came in at 46%, putting it well within the 40-50% target.

The bank normally increases the payout in line with its earnings-per-share (EPS) growth. In the Q4 earnings release, Royal Bank indicated it is still targeting medium-term annual EPS growth of at least 7%.

Risks

A deep economic downturn is the biggest risk to all the Canadian banks. On the personal and commercial banking side, there is a threat that businesses could reduce spending and investment. In the event that things get really bad, unemployment could rise, which would put debt-heavy households in a difficult situation.

Canada Revenue Agency: 1 Rookie RRSP Mistake to Avoid at All Costs

  Canada Revenue Agency: 1 Rookie RRSP Mistake to Avoid at All Costs The RRSP is available to Canadians for the purpose of investing and building retirement income. Bank of Nova Scotia stock and Corby stock are consistent dividend payers that will help grow your money.The Canada Revenue Agency (CRA) collects the taxes due when you start taking out money from your RRSP. At the time of withdrawals, you’re taxed at your rate, which should be lower than when you are working.

Royal Bank ( RY ) Earnings Expected to Grow: Should You Buy? Royal Bank ( RY ) possesses the right combination of the two key ingredients for a likely earnings Here's how owning dividend stocks such as Royal Bank of Canada ( TSX : RY )(NYSE: RY ) can help you build a substantial self-directed pension.

Royal Bank of Canada (USA) (NYSE: RY ) continues to deliver impressive earnings. Is this the right time to add the stock to your portfolio? Let’s take a look at Royal Bank of Canada ( TSX : RY ) (NYSE: RY ) to see if it deserves to be on your RRSP buy list right now.

Royal Bank’s Canadian residential mortgage portfolio finished fiscal Q4 at $302 billion. The uninsured portion is $226 billion, and the loan-to-value ratio on the uninsured housing loans is 51%. A meltdown in house prices caused by a wave of defaults would be bad, but the situation would have to get quite nasty before Royal Bank incurs meaningful losses.

Housing has picked up a new tailwind in the back half of 2019, supported by lower mortgage rates. As long as employment rates hold up, the odds of a housing crash remain slim.

Should you buy Royal Bank stock?

The shares are trading down slightly on the Q4 numbers, and the dip could continue if the broader market gives up some of its big gains in the coming weeks. As such, I wouldn’t back up the truck today.

However, at the current price of $105 per share, Royal Bank trades at a reasonable 12 times trailing earnings. Investors might want to start nibbling on any further weakness. Pullbacks have historically proven to be good buying opportunities in this stock.

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Prep Your RRSP, Because 1 Major Mistake Can Be Penalized by the CRA

  Prep Your RRSP, Because 1 Major Mistake Can Be Penalized by the CRA The RRSP is an ideal for retirees. Resist making early withdrawals to avoid tax penalties. Instead, grow your retirement savings with RBC stock and Fiera Capital stock.The Canada Revenue Agency (CRA) doesn’t turn a blind eye when it comes to slapping penalties on the Registered Retirement Savings Plan (RRSP).

Instrument Name Royal Bank of Canada ( Instrument Exchange TSX : Instrument Symbol RY -T). The bank is concentrated in Canada , with additional operations in the U.S. and other countries. Stock Reports +. Download a comprehensive report detailing quantitative analytics of this equity.

Royal Bank has a strong track record of dividend growth. The current payout provides a yield of 3.9% and BCE ( TSX :BCE)(NYSE:BCE) is Canada ’s largest communications company with wireless and Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and

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More reading

  • Canada Revenue Agency: 3 Investing Moves to Save on Taxes
  • 1 Dangerous Mistake to Avoid When Planning for Retirement!
  • Self-Manage Your Retirement & Boost Your Retirement Income
  • Canadians: Build a Backup Pension the Professional Way
  • TFSA Pension: How Families Can Build a $1 Million Retirement Fund in the Gig Economy

Fool contributor Andrew Walker has no position in any stock mentioned.

Canada Revenue Agency: 2 smart ways to get the most from your RRSP .
Early contribution to the RRSP and investments in dividend payers like the Canadian Imperial Bank of Commerce stock and National Bank of Canada stock are the cleverest ways to grow your money in the plan.There are many ways to maximize your RRSP, but here are two of the smartest ways.

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