JP Morgan Chase & Co (JPM)

This is the best of the financial sector stocks, he feels. It has a great dividend and strong balance sheet. If the macro economies do well it will too. They can do buybacks and trades at 1.75 to book value. He thinks national credit provisions for losses will be a key sell signal – when they tighten, get out. Yield 2%.

CEO Jamie Dimon successfully steered JPM out of the recession a decade ago. If there's a US slowdown ahead, then bad debt will kick up and effect JPM. Sure, tailwinds have doubled US bank stock prices in the past few years, but looking ahead Why buy a US bank when you have to pay a withholding tax (compared to a Canadian bank stock)?

It is a nicely diversified bank with half from retail then the rest from investment banking and wealth management. You have to look at them in the light of any other banks you own. Rates have only gone up in the short term and not the long end, which you need. He thinks it is probable that the dividend will grow.

It isn't stuck in the mud, but it's in a larger upward trend. The U.S. banks come into seasonality later in winter. As long as the JPM trendline doesn't break, then hold it. It may go sideways a bit, but he's looking to buying it

He likes US banks and prefers them to Canadian banks. US household debt is lower than Canada’s. Interest rates are likely to rise faster in the US than in Canada, which is good for US bank stocks. When 10-year bond rates finally rose higher than 3%, US banks started rising again. He owns two regional US banks and is currently looking at a large US bank. Overall, he likes the sector, including JP Morgan, but he is not planning to buy that particular bank.

He added more last week (and other U.S. banks). There's a lot of upside built into the whole space. He's very positive in this space, and expects more upside. A great buy.

They have $1.5 trillion in deposits. They're grown their dividend $12% a year over the last 5 years. Capital position equal to 12%, which is more than they need. Expect more dividend growth. They are the gorilla and will only get bigger. (2.7% dividend, Analysts' price target: $122.36)

It is defensive. Regulatory issues are being scaled back. Rising interest rates are positive for them. They are spending a large amount of money in technology. A lot of money will come back to shareholders as share buybacks and dividends. (Analysts’ target: $121.66).

Love it. A global bank. US economy will stay strong, interest rates will rise, and banks do well in this environment. Extremely well managed. Came through 2008 will less damage than the others. Yield is 1.9%. (Analysts’ price target is $121.34.)

Very well-run. They owned and sold it. Great business. Can’t go wrong with this.

(Past Top Pick on August 30, 2017, Up 19%) They're spending $11 billion on technology this year which distinguishes them from their peers. Pays a 3% dividend yield. Still a winner.

The best-run bank in the world. If you believe in the U.S. economy, this stock will ride it. Rising interest rates are a tailwind. Earnings are growing rapidly, faster than Canadian banks. The stock has pulled back, so it's a great opportunity. (Analysts' price target: $120.17)

(Past Top Pick, July 17, 2017, Up 8%) He simply did a covered call from December, bought at $92.25, sold a $97.50 call for which he got $2.20.

A play on the US economy, consumer. Get about 80% of their business comes from the US. Well positioned to grow business as the economy is recovering. Going forward, they’re going to grow market share. They’ll benefit from tax reform, they have the cash and the technology. Yield is about 2%. They should be in a position to raise the dividend or repurchase stock with the review at the end of June. At 12-13x forward earnings, it’s attractive. (Analysts’ price target is $ 121.36)

The American consumer is releveraging, which is positive for the banks. Their net interest margin should go up with rising interest rates. They are spending significantly on technology, which will allow them to grow at a far lower cost than expanding their bricks and mortar. They will spend less to capture more customers. Additionally, regulation on US banks is coming off a bit, which will help their profits. They are trading at cheap multiples compared to other financial service companies. (Analysts’ price target is $121.52)