Bank of Montreal (BMO.TO)

Of all the banks, this is probably his least favourite because it has a relatively high PE and low relative profitability.

Pays one of the highest yields of the big 5’s. The banks as a group have kind of lagged in this most recent rally. There is no reason why the share price can’t grow along with the earnings. Yield of 4.7%. On a one-year total return, you can get 8% to 10%. (See Top Picks.)

This is a good purchase for the yield. His least favourite of the major banks. Has a muddled message and less growth than some of the others. Expect the stock will be $65-$66 by December. (See Top Picks.)

Canadian bank dividends only go up and it is only a question of when and by how much. Likes them all but prefers TD. You won’t see big banks in the next couple of years going a lot higher.

Preferred shares. Better to buy them individually or go through a fund? New Basil III banking rules have removed the ability of banks to issue new preferred shares and count them into their Tier 1 capital. This is now a disadvantage for banks to issue these securities. The ones you see now are broken into 2 categories 1) rate reset which are very short term and 2) perpetuals. The feeling is that eventually these will all be gone as these rules take hold. If you have a reset that is redeemable in 2014 you may consider taking profits.

Among his least favourite banks. Of all the banks, it is hard to see a catalyst on this one for upward movement. Made an acquisition in the Midwest US in 2011, which is paying dividends, primarily because they got a bargain basement price. However, from an operational standpoint, he would place it as number 4 on his list.

Good quality bank. It is a dividend growth story. Earnings in the mid to high single digit range so should be fine for income investors here. Better than US banks. It is a dividend clipper with half year dividend increases expected.

Midterm for him is 2-3 years. Fundamental side is not so great because they are facing headwinds on the lending side. Borrowing is going to be much muted here. He thinks money coming out of bonds will go into Canadian banks.

Good quarter last quarter and buying back shares. Likes all the banks at this point. Going to $66 when they raise their dividends. Least favourite of the big 5 because they have low relative profitability to the group and lowest net interest margins. Would prefer Royal Bank (RY-T), Commerce (CM-T) or Scotia (BNS-T).

About the cheapest of the banks and the best yielding at 4.58%. Recently has been catching up to some of the others. Wouldn’t be surprised if it got 15%-20% higher from here.

Owns this bank primarily because of the yield as it is a higher yielding bank. Have done a good job and are getting their retail side in order. Have a reasonable business in the US.

Worst performer in the past year of all the banks. Last earnings report was okay with wholesale numbers better than expected. Domestic, core and US did not perform all that well. There are better banks out there. (See Top Picks.)

Canadian banks are in fantastic shape. Have lots of capital. Have the ability to increase their dividends, which he expects will go up to the 50% payout ratio rate. Not trading at an expensive multiple. This one also has the advantage of having a US franchise and growing this US franchise. 4.7% dividend.

Banks are at the higher end of the range. Over next 3 or 4 years the dividend is safe and they may grow a bit. There may be big dips over the next few years.

Does not have too much exposure to this one. Almost a 5% yield. Not the same growth as a small cap, Canadian Western Bank that the caller was going to switch out of. He would prefer another of the other big banks.