Q: Hello my last question on this forum was about Royal Bank and as an investor who relies on the dividend for survival should i be concerned about all this tarif talk,the answer given was basically it would not be affected, How can you explain the drop in price after putting up those kind of numbers today?
5i Research Answer:
RY is down roughly 5% over three months and essentially flat over six months, so we wouldn't be too concerned on recent performance. Companies will see some level of impact if only just from a general drag on economic growth but we would not see RY as being overly sensitive to tariffs specifically. Long-term, we would not be overly concerned with RY but expectations should be tempered as well. Given a slower growth Canadian economy, it will likely be difficult for the Canadian banks to find outsized growth in the near-term.