Retirees: 2 Solid Income Picks for 2016 | The Motley Fool Canada: "Royal Bank of Canada (TSX:RY) has been paying investors a dividend since 1870. The company has weathered every major financial crisis in the past century and is now one of the top financial institutions on the planet.
Some market observers are concerned that the energy crisis and an overvalued housing market are putting Canadian banks at risk.
Royal bank is exposed to both sectors, but the company is more than capable of riding out some tough times.
About 60% of the bank’s residential mortgage portfolio is uninsured, and the loan-to-value ratio on that component is 55%. This means the market would have to fall significantly in a short period of time before the bank experiences any material losses. Most analysts expect a gradual pullback in house prices.
As for energy exposure, only 1.6% of the total loan book is connected to wholesale loans in the oil and gas sector.
Royal Bank pays a dividend of $0.79 per share that yields 4.2%."
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