Canada’s Big Six banks — Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Montreal, Bank of Nova Scotia and National Bank of Canada — are “considered boring” stocks to own, said David Rosenberg, founder of Rosenberg Research and Associates. But it’s a good kind of boring, he said, as bank stocks have provided reliable dividends without much volatility. Over the past six months, the TSX Canadian banks composite index has outpaced the Nasdaq composite by about 20 per cent, Rosenberg said, meaning investors can position the bank stocks “as a stabilizer if tech euphoria fades or policy shocks hit risk assets.” The banks are coming off a very strong year and there have been concerns about valuations. “We see limited reason for alarm at this stage of the cycle, when investors increasingly want a mix of low volatility, stable profitability, and income,” Rosenberg said in a note.
This TSX darling rose 120% in 2025, and analysts are hiking their price targets again
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