I have had stock in Bank of Montreal (TSX-BMO) since 1983, in the Royal Bank (TSX-RY) since 1995 and in the Toronto-Dominion Bank (TSX-TD) since 2000. After my recent reviews of Canadian Banks, I see no reason to change my bank stock.
I would be rather reluctant to sell BMO or Royal as these are held in my trading account and I would face rather large capital gain taxes. I do not think that BMO is as good as a bank as when I bought it, but it has been performing quite well over the years. However, if a bank was really in trouble I would or if I really liked another bank that much better.
I have always like the Bank of Nova Scotia, but not well enough to sell another bank I hold to buy this stock. I do not think as well of its involvement the South America as others. We are always expecting great things to come from South America, but it always seems to disappoint.
I think if you are buying a bank for the short term you might want to go with the one with the highest dividend yield. However, if you buy for the long term, my first choice would by Royal Bank of Canada (TSX-RY, NYSE-RY) and my second choice would be Toronto Dominion Bank (TSX-TD, NYSE-TD). However, these are just personal choices.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Great blog. I have been following your website for the last four years.
ReplyDeleteIn your opinon do you think there will be a market correction coming soon in the tsx?
thanks, Jimmy.
There are always market corrections. It also depends on whether you are talking about a small one or a big one. We are in a cyclical bull market within a Secular Bear market and there is a certain seasonality to the market. However, no one can consistently predict when the next correction will come.
ReplyDeleteI do not pay much attention to corrections. I have a solid portfolio and it will withstand what the market throws at it.
I have never been a big fan of bank stocks. Maybe bank of Montreal is a rare exception. But most large multinational banks seen to get into serious trouble sooner or later. In the end its the tax payers who end up getting the bill for bad bank behavior.
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