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Why This Is a Top Stock to Buy in June

Andrew Walker: Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY) just reminded investors why it commands a premium multiple in the Canadian banking sector.

The company generated fiscal Q2 2019 results that beat analyst expectations at a time when many pundits are sounding an alarm on the outlook for the industry.

Royal Bank reported Q2 net income of $3.23 billion, representing a 6% increase over the same period last year. Diluted earnings per share rose 7% to $2.20 and ROE was a respectable 17.5%.

Fears surrounding a potential meltdown in the Canadian residential housing market might be overblown. Mortgage rates are falling and the Bank of Canada appears content to sit on its hands for a while to see how things play out in the economy before resuming rate hikes.

In the event a new financial crisis hits, or Canada goes into a recession, Royal Bank is more than capable of riding out a downturn. The company is well capitalized with a CET1 ratio of 11.8%.

The board raised the dividend by 4% earlier this year and investors should see another increase before the end of 2019.  The current payout provides a yield of 3.9%.

If you are searching for a buy-and-hold pick for your portfolio, Royal Bank deserves to be on your radar.

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

Amazon CEO Shocks Bay Street Investors By Predicting Company "Will Go Bankrupt"

Amazon CEO Jeff Bezos recently warned investors that “Amazon will be disrupted one day” and eventually "will go bankrupt."

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