Here’s a High-Yield Stock to Think About
One sector that suddenly received a lot more attention
recently is banking. To give you an idea, the Dow Jones U.S. Bank Index has
surged 22.8% since the beginning of November, substantially outperforming the
already impressive performance of the broad market indices during this period.
Obviously, because banks have been a staple for many income
investors, the recent rise in these companies’ share prices should be
considered good news.
Looking a bit further back, though, things appeared less
rosy. That’s because most U.S. bank stocks had a huge tumble during the
pandemic-induced sell-off earlier this year. And even though the recent climb
has been strong, many bank stocks are yet to make a full recovery. In fact, the
Dow Jones U.S. Bank Index is still down by more than 20% year to date.
And that’s why Royal Bank of Canada (NYSE:RY) stands out.
I told readers of Income Investors to check out RY stock
back in January. While there were solid U.S. bank stocks on the market, I
thought this foreign bank was worth considering, due to the outsized yield and
outstanding dividend safety. And because Royal Bank of Canada stock also trades
on the New York Stock Exchange, it’s very convenient for American investors to
buy and sell its shares.
Comments
Post a Comment