Royal Bank of Canada (NYSE:RY) investors are taking on exposure to the Canadian economy
The main reason I prefer Canadian banks over their U.S. counterparts is the fact that they’re backed by a sound regulatory environment and government policies which make sure that banks and their customers don’t get exposed to imprudent lending and large, risky positions in the market. And my favorite among the Canadian banks is Royal Bank of Canada (NYSE:RY).
So what makes RBC stock a better investment for income investors than investing in those names you hear every day in the U.S.? Well, investing in the RBC stock means you’re taking on exposure to the Canadian economy, a good diversification strategy away from the U.S. banking system if you’re in the camp of those who believe U.S. banks are riskier than their Canadian counterparts.
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