Are Canadian Banks Buys?

In my blog entry on Monday, I talked about our Canadian Banks doing very well in newspaper articles published after the second quarterly results had come in. Not only are the Banks doing well but they are raising their dividends.

The Royal Bank (TSX-RY) has raised their quarterly dividend from $0.67 to $0.71. Dividends are this bank is up by 12.7% this year. Its current yield is 3.78%. My most recent reports on this stock was in January 2014 and are available here and here. See my spreadsheet at ry.htm.

The Bank of Montreal (TSX-BMO) has raised their dividend a second time this year and it has increased the quarterly dividend from $0.76 to $0.78. Dividends are up 5.4% so far this year. Its current yield is 4.07%. My most recent reports on this stock was in January 2014 and are available here and here. See my spreadsheet at bmo.htm.

The Toronto Dominion Bank (TSX-TD) raised their dividends early this year and they are up by 10.6%. Its current yield is 3.47%. My most recent reports on this stock was in January 2014 and are available here and here. See my spreadsheet at td.htm.

The Bank of Nova Scotia (TSX-BNS) has just raised their dividends from $0.62 to $0.64 a 3.2% increase and this is the only increase so far this year. Its current yield is 3.63%. Its current yield is 3.63%. My most recent reports on this stock was in January 2014 and are available hereand here. See my spreadsheet at bns.htm.

The National Bank of Canada (TSX-NA) has just raised their dividends from $0.435 to $0.46 a 5.7% increase and this is the only increase so far this year. Its current yield is 3.63%. Its current yield is 4.16%. My most recent reports on this stock was in January 2014 and are available here.and here. See my spreadsheet at na.htm.

The CIBC Bank (TSX-CM) has increased their quarterly dividends from $0.98 to $1.00. Its current yield is 4.12%. Sorry, but I do not follow or blog on this bank.

In a post at the beginning of this year I wrote How to Use my Stock Reviews.

Look at historical dividend yields as a basis for determining if Canadian Banks are currently a good buy, I find that the Royal Bank, the TD Bank and the National Bank have dividend yields higher than their historical average dividend yield and therefore could be considered to be buys. I do not follow the CIBC bank, but its current dividend yield is higher than most other banks except for BMO.

Stock	Price	Div R	Div Y	H Hi	H Low	H Ave	P/Hi	P/Ave	P/5 Y
TSX-RY	$75.23	$2.84	3.78%	4.61%	2.58%	3.60%	Exp.	Cheap	Exp.
TSX-BMO	$76.73	$3.12	4.07%	6.07%	2.66%	4.37%	Exp.	Exp.	Exp.
TSX-TD	$54.18	$1.88	3.47%	4.32%	2.25%	3.29%	Exp.	Cheap	Exp.
TSX-BNS	$70.52	$2.56	3.63%	5.10%	2.38%	3.74%	Exp.	Exp.	Exp.
TSX-NA	$46.12	$1.92	4.16%	4.70%	2.64%	3.67%	Exp.	Cheap	Cheap
TSX-CM	$97.10	$4.00	4.12%

What about titles refer to: Price = Current Price Div R = Current Dividend Rate per year Div Y = Current Dividend Yield H Hi = Historical High Dividend Yield H Low = Historical Low Dividend Yield H Ave = Historical Average Dividend yield, P/Hi = Using historical high dividend, this field says if price is historically cheap or expensive P/Ave= Using historical average dividend yield, this field says if price is historically cheap or expensive P/ 5 Y= Using 5 year median dividend yield, this fields says if price is cheap or expensive

You may want to see my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth Stocks . You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies .

As far as analysts' recommendations go:

Stock	Analysts' Recommendations
TSX-RY	Has 1 Strong Buy, 7 Buys and 7 Holds.
TSX-BMO	Has 2 Strong Buy, 1 Buys, 11 Holds and 1 Underperform
TSX-TD	Has 9 Buys and 5 Holds.
TSX-BNS	Has 2 Strong Buy, 7 Buys, 15 Holds and 1 Underperform
TSX-NA	10 Holds and 2 Underperform
TSX-CM	Has 2 Strong Buy, 4 Buys, 5 Holds and 3 Underperform

On my other blog I am today writing about IGM Financial Inc. (TSX-IGM, OTC-IGIFF) ...continue...

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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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