Why You Should Buy Royal Bank and TD Bank in This Correction| MENAFN.COM

Friday, 28 January 2022 06:16 GMT

Why You Should Buy Royal Bank and TD Bank in This Correction


(MENAFN- Baystreet.ca) Why You Should Buy Royal Bank and TD Bank in This Correction

The top Canadian banks are set to unveil their final batch of earnings over the next week. Canadian stocks have been throttled due to the eruption of global volatility since late last week. This may be the perfect time to scoop up bank stocks ahead of their fourth quarter earnings release.

Royal Bank (TSX:RY)(NYSE:RY) is the top financial institution in Canada. Shares of this bank stock have climbed 22% in 2021 as of early afternoon trading on November 30. However, the stock has dipped 2.7% over the past week.

This bank is set to unveil its fourth-quarter and full-year 2021 results tomorrow. In the first nine months of 2021, Royal Bank delivered net income of $12.1 billion or $8.39 per diluted share – up 48% and 50%, respectively, from the prior year. Shares of Royal Bank possess a favourable price-to-earnings ratio of 12 at the time of this writing. Moreover, it offers a quarterly dividend of $1.08 per share. That represents a 3.3% yield.

TD Bank (TSX:TD)(NYSE:TD) is the second-largest bank stock on the TSX. Its shares have increased 28% in the year-to-date period. The stock has dipped 2.8% week-over-week as of early afternoon trading on November 30.

The bank is set to release its earnings in the afternoon on December 2. In Q3 2021, TD Bank delivered adjusted earnings of $10.7 billion or $5.83 per share in the first nine months of the year – up from $6.99 billion or $3.76 per share in the prior year. Its shares possess an attractive P/E ratio of 10. Moreover, it offers a quarterly dividend of $0.79 per share, which represents a 3.4% yield.

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