Core Insights - U.S. investors often exhibit home country bias, which can lead to missed opportunities in foreign markets, as evidenced by Canadian stocks outperforming U.S. stocks by nearly 2-to-1 last year [1] Company Overview - Royal Bank of Canada (RBC) is a Toronto-based bank with a market capitalization of $246 billion, which has seen a 46% increase in stock price over the past year [2] - The bank's revenue sources are well-diversified: 34% from wealth management, 30% from personal banking, 21% from capital markets, and 15% from commercial banking and insurance [2] Financial Performance - RBC's operating margin stands at 44.8%, significantly higher than the S&P 500 average of 13.2%, indicating strong profitability [4] - The bank reported a year-over-year earnings growth of 29%, which is more than double the S&P 500 average of 13% [5] - RBC raised its dividend by 6.5% to 1.64 Canadian dollars ($1.30), with analysts predicting a strengthening of the Canadian dollar against the U.S. dollar in 2026 [6]