Canadian banks

[Roadmap2Retire]

DivWatcher,
Good point. I was not aware that the banks had a target ratio of 40-50%...looks like they are in the high 40s currently. Something to keep an eye on -- if they can continue growing their earnings.

crimsonghost,
Yes, I intend to do the others in the coming months. Next up: BNS and BMO in March.

[crimsonghost747]

Great. I'm of course waiting for the CIBC one since that's my choice out of the 5 but the others are great to read too.
Keep up the good work.

[crimsonghost747]

Time to bring this thread back to life.
My position in CIBC is already large but in the current market conditions I still see these banks as excellent plays.

So I've decided to add a second bank to my portfolio, simply to add some diversification. I'm down to two choices, TD or RBC... All of the financials look very similar and quite frankly I think either one would be a good choice. I'm kinda leaning a bit towards TD simply because of their larger US exposure but I'd like to hear your opinions on why you chose or would choose one of these.

[ChadR]

At first glance, both are very similar. While RBC has a slightly higher yield, TD has a slightly lower P/E. I would probably go with TD because of their larger US exposure. Though you're right, both are solid choices. Maybe go with both if you have enough capital to make two purchases.

[Binary]

Time to bring it backto life again
CIBC's (CM) yield is 4.25%, looks like there was no dividend cut since decades, business looks to be stable, P/E is around the long-term average, raises keep coming even within the year, books look very good to me at the first glance... Anybody following, anything suspicious I don't see?

[crimsonghost747]

(01-30-2018, 01:19 AM)Binary Wrote: Time to bring it backto life again
CIBC's (CM) yield is 4.25%, looks like there was no dividend cut since decades, business looks to be stable, P/E is around the long-term average, raises keep coming even within the year, books look very good to me at the first glance... Anybody following, anything suspicious I don't see?

CIBC is, and has been, trading at a discount relative to the others mainly due to the risk related to their larger exposure to the Canadian housing market as well as the o&g sector, the latter having quite a bit of unsecured loans. However they have been working on it, most recently with the private bankcorp buyout which gives them a bit more geographical diversification.

Overall it's a great company to own for us DGI enthusiasts but it might come with a bit more risk than the other options. It is currently one of my largest holdings.

[cannew]

For us Canadians investing in any of the 6 major banks ( I include National Bank even though it's not as large as the other five) is a must. I know one should try to buy during the lows, but just investing on a regular basis, reinvest the dividends and hold, and continue holding, will work just as well.

[rayray]

(01-31-2018, 06:21 PM)cannew Wrote: For us Canadians investing in any of the 6 major banks ( I include National Bank even though it's not as large as the other five) is a must.  I know one should try to buy during the lows, but just investing on a regular basis, reinvest the dividends and hold, and continue holding, will work just as well.

After my initial TD purchase and clarifying the U.S./Canadian tax situation I invested in the other top 4 Canadian banks, it's worked out well, all solid performers.