Bank of Nova Scotia (BNS.TO)

If you were going to buy a bank for a 10 year hold, he would probably pick this one. Including dividend and growth in dividend, it will probably double over that time frame.

Great dividend yield. One of the problems is that people give it a higher multiple because of their emerging market assets. Because that area is now very tough people have stepped back from it. The volatility in those markets should help these guys when they make acquisitions. Their Canadian franchise isn’t as good as other Canadian Banks.

This is his only Canadian bank. It is the cheapest of the Canadian banks, with the second-highest yield of 4.24%. Investors don’t like the fact that it has a lot of operations in Latin America and in Asia, whereas he loves that. That is going to be where the growth is. He doesn’t want a bank that has a lot of Canadian exposure because of headwinds on weak energy prices.

Compared to the financial sector, it has been a relative performer in the 1^st part of 2014, but slightly underperformed this year. Thinks the banks are going to do okay. He would suggest that you buy a basket through an ETF.

This could be categorized as probably the most conservative Canadian large bank. Have always been extremely cautious. The one problem they might have is that they are not into the financials in terms of new issues, etc. as some of the other banks. This means that with their conservatism, you are not going to get surprised on the upside or downside. The kicker is that their 25% of offshore has a much growthier aspect to it than you are going to get either in the US or Canada.

Each bank tends to focus on their own little realm, and he really likes this for the international growth. Tends to be a bit more lumpy than most of the other banks. Over the longer term, the rates that they can charge in developing countries are a lot higher. This should continue to do well. Yielding close to 4% and doesn’t think there is a risk to the dividend.

One of the most international banks in the Canadian group. They are in Mexico, South America, the Caribbean and a little bit in Asia. That should help them generate more growth than the pure Canadian banks. On the flipside, they also face some challenges in the jurisdictions. On the whole, he feels they provide a higher earning power and growth over the long-term. This is a core name that you should have in your portfolio.

Has had a big move since the March lows. The game in financials right now is about cost cutting. Government is going to increase taxes on shadow dividends, which is going to knock another 1% off his 2016 estimates on the banking group in general. Banks are a good group. Dividends are high. You are probably going to have a better time to Buy over the next couple of months.

A great bank. Struggling a little right now because of its exposure to Latin America, which people are worried about. Has a new CEO who is straight shooting. Likes what he is doing. Taking tough medicine in Mexico and Latin American countries. These are cyclical problems, but there is a real risk that you could have some kind of emerging market contagion, and this bank is the most exposed. Be wary of owning an oversized position in this.

This is a meat and potatoes type of name that you want to own in your portfolio. He is underweight Canadian banks relative to the TSX index, primarily because a large part of their revenue comes from net interest margins. With interest rates continuing to stay low, the spread is going to continue to be lean. What has offset that is the Canadian consumer intoxicating themselves with debt and continuing to borrow. He is starting to see a ceiling there in that loan growth is slowing. What is unique with this bank is that a large part of their revenue is coming from Latin America.

Bank of Nova Scotia (BNS-T) or Home Capital Group (HCG-T)? Recently ran into problems with international operations, but longer-term that is a higher growth area. Both stocks have pulled back. Her preference would be this one because of their diverse business base.

(A Top Pick April 8/14. Up 3.2%.) Has been surprised at the poor performance of the banks. Feels this has been a Buy through this period, and he has added to positions on dips. (See Top Picks.)

Has had the most successful expansion strategy outside of North America. The results will be washed over by what happens in Canada. Consumer sentiment is against banks. It is hard to lose money over the long term.

His least favourite of the banks. It has a large exposure to Latin America and is focused on the global market in wholesale banking. The banking world is very competitive right now. This bank is well capitalized and well rated, but Latin America is under stress.

Canadian banks tend to do well this time of the year until mid-April. He sees some upside for the Canadian banks right now.