
TSE:CM
You can hold it for income. Dividend is safe for sure. Less foreign exposure, so this will benefit them in the short term. Canadian assets continue to grow. Best quarterly results of all the banks. Mortgage book and credit cards could come under pressure. He prefers other banks, based on history with CM. Pretty compelling yield of 6.2%.
A bit like chalk and cheese. CM is the most domestic and Canadian bank. BNS is the most international, especially in Latin America. BNS has more risk because of all that could go wrong in developing countries. CM has more risk because it rarely has found a log that it couldn't trip itself over. Invest with the one that you bank with. It will at least be emotionally satisfying, as your bank charges will be covered by dividends, which will increase regardless.
Trading at only 1.1x book and 11x earnings, we reiterate this Canadian banking powerhouse as a TOP PICK. Cash reserves are remaining stable, despite retiring debt and buying back shares. It pays a great dividend, backed by a payout ratio under 65% of cash flow. We continue to recommend a stop at $51, looking to achieve $69 -- upside of 18%. Yield 5.8%
(Analysts’ price target is $63.76)