A Glance At The Big 5 Canadian Banks And Their Current Yields
Well, the markets are going crazy right now, and personally I don't think this volatility is going to end in the near future. There are a lot of stocks that are selling at a deep discount right now. And some of these stocks are the big banks here in Canada. Even though the price of crude oil hit $75 today, and the Canadian dollar has done a swan dive, the Banks here in Canada haven't taken as big a hit as I expected. This could be because a recent report said that Canada's banks are the most 'sound' in the world. In any case, I figured it might be a good time to take a quick glance at the big 5 Canadian banks and see what their current dividend yields are sitting at. I thought I'd take two metrics into consideration in todays chart. First and most important is the Dividend Yield, the second is the Payout Ratio which I feel is a good indication if future dividend increases are feasible.
All yields and prices are as of todays close (October 15, 2008) .
| Bank | Ticker | Price | Yearly Div. | Div. Yield | Payout Ratio |
| Bank Of Montreal | BMO | $40.87 | $2.80 | 6.85% | 78% |
| Bank Of Nova Scotia | BNS | $43.50 | $1.96 | 4.51% | 50% |
| Canadian Imprerial Bank Of Canada | CM | $54.56 | $3.48 | 6.38% | 40% |
| Royal Bank Of Canada | RY | $45.00 | $2.00 | 4.44% | 55% |
| Toronto-Dominion | TD | $56.68 | $2.44 | 4.30% | 45% |
As we can see, BMO and CM have the highest yields, but what is really nice to see is CM's low dividend payout ratio at 40%. Compared to BMO's 78% payout ratio, CM looks to be the best pick at the moment. With that being said, I personally don't think that the current market turmoil is over yet. Always remember to do your due diligence, and that in the long run, the banks are 'most likely' going to continue to rise in price, and hopefully they will continue to raise their dividends. So even if prices go down lower, right now still might not be a bad time to enter a position.
Enjoy the ride!
Bullish Dividends
Full Disclosure: I currently do NOT own shares in any of the banks
Disclaimer: Any information contained in the above article represents my opinions only, and should not be construed as personalized investment advice. I cannot assess, verify or guarantee the suitability of any particular investment to any particular situation and the reader of the article bears complete responsibility for its own investment research and should seek the advice of a qualified investment professional that provides individualized advice prior to making any investment decisions. All opinions expressed and information and data provided therein are subject to change without notice.
Delicious
Digg
StumbleUpon
Propeller
Reddit
