Laurentian Bank (LB.TO)

Unlikely a bigger bank will take it over. One reason is that no big bank will take over a bank that has a union, like LB-T. They have had mortgage problems that are now fixed. Their valuation has come off while all banks are down. Hold. Dividend is safe.

They've had issues with mortgages in the past two years. Pays a generous dividend. Is a smaller Canadian bank. But when he consider banks, he doesn't look at LB, especially now during rising interest rates.

A troubled bank. Problems with mortgages last year sparked a plunge in investor confidence and a stock sell-off.
He avoids laggards in a sector.

Canadian banks don’t normally cut dividends but the dividend is high. This is the only bank he would look at. It could come down further during tax loss season.

The yield has gone up as it has been out of favour. It went back to the lows of 2016. There are better financial names to be in like BMO-T or RY-T or TD-T. If it was to break down below this then it would get to a multiyear low.

The dividend is definitely sustainable. They are paying out less than half their earnings. They had some mortgage issues in the past, but the stock price is at a very attractive level. Yield 6.3%.

Still undergoing contract negotiations. Adjusted EPS down 18%. Other income has decreased 7%. Loan growth ran into trouble. YTD, down the most of the Canadian banks. Playing catch up to its peers. Its quality is not on par with the rest of the banks.

They are digesting a lot of changes in their business. Many write downs on their books. They think there is going to be a rally in the TSX for Q4 in Canadian Banks and they think this stock should participate. Not many red flags when they looked at it. Trading at 7 times earnings with a 6% dividend yield.

Stay long. It has underperformed the group. Trading under 8x forward earnings. It looks fine here. Great support here.

When you look at TD-T and BMO-T, they have been the best performing banks this year and because of the US exposure. He is not sure this is where he would go with profits, compared to RBC and so on, they are very different businesses.

It is a well managed but regional and profitable bank. It has been for sale for a long time. There is a union there while other banks are non-union. It has a safe dividend. It is tough for them to grow. There won't be a lot of excitement in this name – steady as she goes.

His partner just went through this stock and despite it having a great yield and trading below book value, it still needs time to improve. There are some mortgage lending issues that still need to be worked out. He would rather own any of the major chartered banks, despite having a lower 4% yield. Yield 6%.

It is a 6% dividend and the payout is only 46% but the problem is the other metrics. Price moment has been poor and there have been some misses. It is a small short for him as a hedge against other financial positions.

It recently fell below $46, matching 2014 and 2016 lows. There are better places to put your money in financials.