The stock market is always in motion. Inflation, jobs reports, geopolitical tensions, tariffs, government policies, and the list goes on. Investing may be a full-time job, as it requires you to know your stock, the risks and opportunities, and whether the company can sustain the trend. For instance, the 2022 and 2026 energy shocks pulled down consumer discretionary stocks but increased investment in oil and gas stocks. The artificial intelligence boom wiped away value for most software stocks but benefited electronics manufacturing companies.
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For investors who want to stop checking the market every day
Checking the market daily was initially exciting. You dedicated time to your investments and learned how the market functions. But that may not always be possible. Life takes priority. Your family, health, job, or business may demand more time and attention, putting investments on the back burner.
For such times, it is better to have some evergreen stocks so you can automate your investments. No matter the share price or market mood, you don’t have to think twice before investing in them, as you know they will yield returns in the long term.
The one stock to own in every market
One such stock is Royal Bank of Canada (TSX: RY). You don’t need to know the market or need any stock tips to invest in RBC. Founded in 1864, the bank has been operating for over 160 years. It has survived the 1980s oil crisis, the internet boom, and the 2008 Global Financial Crisis that saw some of the too-big-to-fail banks fall. RBC even continued to pay dividends when major US banks failed in the Financial Crisis. It did not receive a direct taxpayer bailout but accessed liquidity and emergency funding programs from the central bank.
Those who lived through the 2008–2009 financial crisis understand that withstanding the crisis in itself was a big achievement. RBC did not grow dividends for two years (2009–2010) till it stabilized earnings.
RBC is so integrated into the Canadian economy that its personal banking customers also become its commercial banking, capital markets, and wealth management customers. Numbers from RBC show that 80%-plus of Commercial Banking clients are also Personal Banking clients, 90%-plus of Direct Investing clients originate from Personal Banking, and 16% of Canadian Banking clients invest in RBC GAM mutual funds.
The whole banking and financial services ecosystem, from deposits and mutual funds to mortgages and insurance, helps RBC earn more revenue per client.
Key growth catalysts for RBC
Canada’s infrastructure spending, AI boom, and trade diversification present capital market and commercial banking opportunities. The Bank of Canada has kept the interest rate unchanged despite pressure from tariff-induced inflation, which stood at 3% in August 2026.
If the central bank increases the interest rate, RBC will benefit from higher net interest income from personal and commercial banking. If the central bank cuts interest rates, RBC benefits from loan volumes and increasing assets under management.
Key risks for RBC
RBC stock is directly impacted by an economic slowdown, as transaction volumes slow. When consumers and businesses reduce spending or slow investments, the flow of money eases. For such times, RBC maintains a 13.5% Common Equity Tier 1 Capital. This reflects the common stock and retained earnings capital; the first to absorb financial losses before it affects consumer deposits.
Like all banks, RBC is also exposed to the risk of default by borrowers – mortgage, personal loans, and credit cards. It sets aside an amount as a provision for credit losses for loans in Stage 2 and 3 of recovery.
The biggest risk is inflated or inaccurate financial numbers, which may paint a wrong picture of the credit risk. However, its large-cap status requires a regular audit of financial statements. Moreover, many eyes are analysing RBC numbers and would bring forward any discrepancy early. RBC’s strong risk management makes it a stock to buy without worry.
What to expect from RBC in five years
The right way to look at RBC’s returns is not annually but in five years. The stock price can double your money if the economy is growing, and you can expect an 8% average annual dividend growth rate.
