Personally, I like the actions of the Canadian Bank. Your investment is always safe and solid in banking stocks.
If you live in Canada or if you were born in Canada and you live elsewhere, there is one thing you are really proud of, these are Canadian banks. In Canada, we have 5 large banks – RBC, CIBC, BMO, Scotiak (Bank of Nova Scotia) and TD.
All the stocks mentioned here are blue chips, so your money is safe, healthy and earns good dividends over time. In addition, all these actions are negotiated on the Toronto stock market (TSE), so you don’t have to exchange your dollars. Investing in Canadian banking stocks is a must for each portfolio. Let’s start with TD Bank.
1. TD Bank StoCK
TSE symbol: TD
First of all, I love TD Bank action. Look at the table below for yourself. It is a wonderful growth scheme throughout the years!
The reason why I considered the maximum time in the above graph is to show you how the stock has worked since its creation.
TD Bank shares are currently negotiating around $ 78 Canadian.
Now, with the growth of crazy actions, TD shares also pay a dividend yield of 4.05%. Isn’t that wonderful!
Look at him Dividend growth rate TD bank stock:
The action dividend went from $ 0.14 to $ 0.79 today (2001-2021).
2. CIBC Bank Stock
TSE stock market symbol: CM
Personally, CIBC is one of my favorite banks. I have been a bank with them for over 5 years now.
You will find below the trading model and the history of the CIBC Bank shares:
Again, look at the action table and its wonderful price growth over the years.
Also note the percentage of dividend of 4.95%, which CIBC shares pay.
Now let’s quickly look at dividends growth over the years and compare it to TD.
Have you examined the growth in action dividends in the past 20 years? It is a crazy and wonderful right.
It was therefore the CIBC stock for you.
Remember that you plan to invest in TD or CIBC or any other Canadian banking actions in this list, your money is safe and solid.
Then BMO.
3. Bank of Montreal (BMO stock)
TSE Symbol on the stock market: BMO
You will find below the action graph: (maximum period considered for better analysis)
If you have carefully noticed, the three banks discussed so far – TD, CIBC and BMO have similar stock models, right?
In any case, BMO currently offers a dividend of 4% on its stock. In addition, BMO is one of the oldest and well -managed banks in Canada.
Let’s quickly look at it History of dividend growth BMO stock.
Look at this growth in the dividend over the years, isn’t it wonderful to look at?
Again, if you plan to invest in actions, let me tell you again, in this article, we are talking about the best Canadian banks here. They are all high capitalization blue-chips and the safest skies in Canada to park your money for good growth and juicy dividends over time.
In addition, Canadian banks are not managed as in the United States, Canada’s beauty lies in the strength of the financial sector. The central bank controls interest rates.
4. Stock from the Scotia Bank (Nova Scotia Bank)
TSE: BNS
First of all, SCOTIA Bank’s actions have similar trading models and growth in other banking actions.
The action is currently negotiated about $ 75 Canadian and pays a dividend of 4.76%.
What is even more interesting is the history and growth of the dividends of the bank over the years.
You will find below the history and growth of BNS dividends in the past 20 years.
5. RBC or Royal Bank of Canada
TSE: Ry
The Royal Bank of Canada is one of the premium and best banks in Canada.
The action is currently negotiated at around $ 108 Canadian. Please find the table below (again, I considered the maximum time for a better analysis).
In addition, RBC’s banking shares are negotiated under the symbol of the Toronto stock market (TSE). The action currently pays a dividend of 3.99%.
Regarding the history and growth of dividends over the past 20 years, Please find the graphic below.
So which of these banking stocks is a better purchase today?
First of all, before we can choose the real winner or the best bank here, you must consider a ton of metrics or ratios to determine the best action to buy today.
Among these measures, one of the most important factors is to know how much a stock is really undervalued or the P/ E ratios.
Again just a small warning, when we talk about the P / E, you also have the P / E the course of the company’s action is generally factors in the term profits of the company.
Then you have the BPA or the profit by action.
Let us again list the P/ E ratios of banking actions here: (for quick reference)
RY: 13.42
TD: 12.14
CIBC: 14.35
BMO: 12.91
BNS: 14.21
Thus, looking at the P/ E ratios above, it seems that TD is the most undervalued stock and a better purchase compared to other banking actions today. It could change tomorrow. The COZ, P / E ratios depend on the share price and the profits declared by the company.
In addition, you cannot compare the financial sector or the bank’s P / E to technological actions such as Apple, Google or Microsoft which is negotiated with several 35x.
Last point but not the least, always consult the quarterly and annual reports of the company that really interests you. Know all of the shares before investing only one $. Do not exchange day and do not burn your hands. Always invest in long -term and good quality shares. Build a portfolio over time with good quality investments. You can thank me later for this.
Last words
As I said, if you are considering shares, investing in Canadian banking stocks is always a safe and blue investment.
All the banking actions mentioned in this article have excellent growth over the years, whether for the appreciation of capital or the growth of dividends.
Do not forget to invest in the Blue Chips in the long term.
Thank you for reading, let me know your thoughts and comments below.
