Top 7 Canadian Bank Stocks that Pay Dividends

A US hedge fund manager is shorting this stock. His premise is that credit losses will increase and she expect that this and next year. He's really making a call on the Canadian economy, but she doesn't see the Canadia economy to go into recession or our housing market to implode. Recent laws have cushioned…

If he had to pick a Canadian bank it would be this one. Their US exposure is fairly attractive and they have been an outperformer. They did a really great job in the US. This would be his first choice in the Canadian banks.

If there's a recession. After making some big deals, there are not seriously in the wealth management business. They also restructured. It will be hard to synergize the wealth management business. Also, BNS are big players in emerging markets, which have had a tough time and have pressured BNS. In a recession, all banks do…

He is comfortable with most of the companies in the financial sector right now. He likes BNS, then Royal, then TD and then BMO and CIBC. You could own any one of them or an ETF that has all of them.

They always bad a bad rep among Canadian banks, but it's doing better lately, trading a full point ahead in yield vs. its peers. It has the best valuation among Canadian banks. CM's big exposure to Canadian mortgages and fears of massive defaults? He doesn't worry, because the CMHC protects mortgages here, and many mortgages…

National Bank vs. Laurentian Bank Laurentian, because their mortgage debacle has dragged down the stock until it's now the cheapest Canadian bank. National isn't trading as much at a discount as its peers (as LB), and it also has the biggest exposure to Canadian oil, which is a red flag.

If he was going to buy a bank it would be this. He's seeking dividend companies. He bought it in December at $39.56 with a 6.6% dividend. It has a good chance of rising above $50 again. Since then, he has bought more. But he wouldn't buy--or sell--it at today's price, though.

The whole banking sector is quite positive. The chart shows a little head and shoulders. If it can break above $32, it would probably run away pretty nicely. He likes the whole financial sector. (See Top Picks.)