Bank of America (BAC)

He continues to like this. Regulatory reform and roll back is allowing regional banks to do more deals with BAC-N. It is trading only 1.2 times book value – good valuation. A great franchise, with a good business model. You might get a better bang for your buck with KRE-N.

Hold for another 3-5 years? Has done very well since the crash. Good play on the US economy and consumer, and she is positive on both. You can continue to hold it. Banks should continue to do well, as long as US economy and consumer continue to. At end of June they should hear about capital return and any increase in dividend. Anticipates a dividend raise and share repurchase at that time.

(Past Top Pick on April 13, 2017, Up 37%) Have a great wealth franchise, investment bank, retail franchise and global operations. Also, banking regulations are changing in their favour. Warren Buffett owns 6%. The wind's at their back.

His favourite U.S. bank. Shares have pulled back, but earnings are kicking in. They're buying back a lot of shares and can increase their dividend. They are in the sweet spot with exposure to the boomingU.S. economy. Strong jobs report today points to continued strong U.S. economy. (Analysts' price target: $34.77)

Banks stocks have come under a lot of pressure recently. They look like a lot of value now. The recollection of what happened during the financial crisis is hanging over these banks. What’s going on in Italy brings fears of some instability seeping through. He doesn’t think so. As long as you have some US dollars, US banks are probably one of the best places to allocate capital. (Analysts’ price target is $34)

He's long BAC and prefers US to Canadian banks. Expect share buybacks by BAC for the next five years. There's a long runway here.

He likes the financials. 35% of their portfolio are financials. Better than expected results for Q1. Trading at 1.2 times price to book. He thinks there is going to be dividend increases going forward. In 2017 they announced a share buyback program for $17 billion. Pays a 1.6% dividend yield. (Analysts’ price target is $34.77)

BAC or JPM? You'll do well with either. BAC is more focused on the US economy; JPM is more sensitive to capital markets. He owns both and would buy both today. Both will raise dividends. Exposure to an improving U.S. economy is a tailwind.

This is his biggest holding. His current target price is over $38. He bought this at $6 when the banking sector was beaten up. This illustrates the strength of the contrarian approach. He won’t be buying more at this price but people who buy under a different system, such as a momentum system, might find this attractive.

Probably one of the top two banks. Ticking off all the boxes. Has one of the weakest dividend quality scores according to his model. Wells Fargo & Co (WFC-N) looks the most undervalued.

Likes it. BAS is one of the best of this group, behind only Wells Fargo as a mortgage orginator. Higher interest rates and deregulation are tailwinds. BAC may hit $40 by 2020, possibly.

It's a good play on the U.S. economy. After recovering from the recession, it can increase its dividend now. Owns JP Morgan instead which is less focused on the US consumer than BAC. But it may be prudent to take some profits from BAC and buy some JP Morgan or a Canadian bank.

Emerged from the financial crisis as a much stronger company. He prefers in the US banking sector companies more leveraged to economic growth. One of those big safe companies. If you are looking at 10 years you can put on your portfolio and just hold on to it.

A core holding. It trades at a big of a discount. It has earnings and dividend growth. It had this massive run that priced in higher interest rates, healthy US consumer and economy and the market is digesting the new reality of all of this being priced in. Own a basket of banks.

It is one of the US premier banking enterprises and the new leader is doing a great job cutting costs. The financial sector is still not at record high valuations, so there is still room to run. Higher interest rates are good for them. However, if short term rates become inverted then margins could get squeezed, since their funding is short term.