Canadian Imperial Bank of Commerce (CM.TO)

The Canadian banks have done incredibly well since the recession. They offer great dividends, but how much further can they go? The bottom lines are phenomenal, but he is concerned that the banks might be making too much money. There is a risk of overexpanding -- banks often do stupid things when they have a lot of money coming in, resulting in huge writedowns. Therefore he would not buy any of the Canadian banks at this time. With interest rates going up, this is good for the banks, but the economy will turn. Remember 2008/2009 when you could have these stocks for a pittance--this will happen again.

He is a fan of this company. Canadian banks are not cheap, nor are they expensive. He likes Bank of America (BAC-N) better as they are only paying out 20% of earnings versus up to 50% for CM-T. Yield 4.5%.

Hold CIBC (CM-T) or Cooper Tire & Rubber (CTB-N) in TFSA? CIBC for constant dividend growth and those dividends will compound without getting taxed.

Will it split? He loves to see splits to be retail friendly. Doesn't see a split here.

He thinks CIBC is one of the two best opportunities in the financial space in Canada, on a valuation basis. The other is National Bank (NA-T). With the selloff, CIBC currently trades at about 10 times, giving about a 4.5% yield. It is difficult to think of an environment in which a Canadian would not have this stock in their portfolio. You can enhance your return by buying at opportune times. This pullback gives a good buying opportunity.

This is the strong seasonal period for Canada banks until mid-April. They are doing well this year, but have not had that strong uplift we expect. CM-T should come down to about $104. It will underperform because it has less US exposure. He would wait for strength before jumping in.

He bought it a while ago, likes the chart. After the TSX settles out from this correction, the TSX might rally well in the spring and a rally in the TSX will include the bank stocks. Buy after the correction.

Banks have been played as investments that win in a rising interest rate environment. You only get a 3% yield but as bonds goes up they looks more attractive. He does not think dividends will grow as fast as in the past.

A good commercial bank. It has improved in the later years concentrating more on the retail side and not trying to be an investment bank. They bought a bank in the US and they had to pay more than they expected. They are executing particularly well though on that acquisition. Cost structures continue to come down. Banking is changing in general like retail is.

All Canadian banks have been home runs since the financial crisis. They are all in slightly different businesses. Toronto Dominion (TD-T) is more in the US, Royal (RY-T) is more in capital markets, etc. This one is more of a domestic bank and focused on retail and wealth management, so they are a bit less dynamic. If you own, hang onto it and just leave it alone. The banks are in good shape, as long as the Canadian consumer credit situation holds up.

They have lagged a lot of the other banks in the last couple of years but management has done wise things. They pushed into the US with wealth business. The more exposure to the US economy the better. It has always had the lowest multiple and the highest yield, so there is no reason to jump ship right now.

They have lagged a lot of the other banks in the last couple of years but management has done wise things. They pushed into the US with wealth business. The more exposure to the US economy the better. It has always had the lowest multiple and the highest yield, so there is no reason to jump ship right now.

Dividend yield of 4.3%. (Analysts' price target is $130.)

Management is still doing a phenomenal job and it is still the highest yielding bank. All 5 Canadian banks are something he is interested in. It’s a horserace between all 5, as they are all great. He owns Royal Bank (RY-T) and Bank of Nova Scotia (BNS-T).

On their acquisition of Private Bank Corp, did they pay too much? They probably did. They were under pressure as they were one of the few Canadian banks that had nothing in the US. The US bank stocks took off and they ended up paying more for it. The acquisition helped their last quarter. On their other numbers, they have done well.