Royal Bank (RY.TO)

Canadian bank for dividends? For a 10-15 year time horizon, the Canadian banks are a pocket of value. They are trading less than 10 times forward earnings, which already include loan loss provisions. They have high asset qualities. Buying here is a winning formula for the long term. The dividend will pay you to wait for the market to return to normal post-pandemic. TD, RY and BNS happen to be the ones he favors for his clients. They have exposure to international markets. BNS has the best valuation and the dividend yield is better than its peers.

He's starting to nibble at TD. This and RY are the top two Canadian banks. But in a low-interest rate environment, it'll be hard for them to make money.

Among the Canadians, RY, TD and NB are trading at small premiums to book value. These are solid choices with decent loan books. Canadian consumers have heavy debt and that is a problem, and this risk will rise as this slowdown continues. Can the banks long-term sustain their dividends? The banks are allowing customers to defer some payments, though, so they are "team players" but long-term there is a concern.

Canadian Banks including TD-T and RY-T. He wishes we had earnings out of the banks because we are flying blind. It is hard to see anything positive out of then. The stocks have fallen a lot. His preferred is NA-T. It is hard to be materially bullish on the Banks unless you are a long term investor. He would not add more to positions, just hold.