Canadian Banks are good quality blue chip stocks and are under-valued right now. They also offer above-average dividend yields. As the interest goes up, the stock tends to appreciate. Here’s the best Canadian banks that pay dividends.
(A Top Pick Jun 08/18, Up 8%) Half of the gain was from the dividend. They have posted earnings growth of 7% over the year. They are trading below historical multiples. About 23% of earnings come from the US. She thinks they will continue to increase the dividend.
Why does volume trade spike in the last minutes of trading? The bulk of trading volume for most stocks actually focuses on the early start of the day, so this is unusual. As this in the index, there may be some index balancing that is going on. He is uncertain overall.
TD-T vs. RY-T. TD-T is bigger than RY-T in the US. BNS-T is a bit cheaper. He is warming up to the sector in general.
This is too big for him, since he invests in small/mid-caps. Canadian consumers are levered up, so he doesn't buy Canadian banks. He prefers TD.
RY is his favourite bank, but there's nothing wrong in investing in Canadian banks. The banks pay a 4% dividend and raise them by 6% a year. That's why the Canadian banks beat the TSX.
(A Top Pick Jan 25/18, Down 9%) Banks in general had a rough year. Q4 was very strong for them. Trades at a discount compared to the group. He thinks it is going to grow at 8% annually. Still like it.
LB hasn't followed the big Canadian banks. It's been sideways for many years. It's been a definite downtrend since late 2017. Recently, it looks like it's breaking the downtrend, which is positive. Now, the chart looks good. He's okay with it.
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.)