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Discussion Starter #1 (Edited)
Even with the earnings coming this weekwith heavy loan-loss provisionsbank stocks are holding up pretty well. Is this mainly as investors think the worst is over for them and going forward things will improve. Just something I noticed, will see how the TD & CM do today.
 

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I have always been overweight and comfortable investing in Canadian Bank stocks due primarily to their 100 plus year record of paying dividends and past performance. In saying this I have been a bit nervous over how they will fare due to the impact of the pandemic. From what I have seen the impact is significantly less than I expected and despite the heavy loan loss provisions they are still profitable and their capital levels seem relatively unchanged and are reported to be good. The banks seem to be faring well compared to areas like restaurants, hotels, entertainment venues, airlines, and others. I am actually comforted by the reported results and plan to just ride it out and collect dividends .
 

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TD reported earnings were $1.5 billion, down 52% compared with the same quarter last year, and adjusted earnings were $1.6 billion, down 51%.
 

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Note that there are a couple of bank threads in the General and the Investing forums.

With all the big banks reported now, what I take from it is that while they have taken a hit, they still remain profitable and capitalization is strong, per the CET1 ratios being reported. Dividends seems safe but I don't see increases until the end of 2021, if not 2022.
Eder indicates in one of the other threads that he suspects that a lot of the bad news is being frontloaded to this quarter and I tend to agree with that even though the next quarter results will encompass a chunk of the shutdown timeframe and there's a bit of a question mark what will happen in September where a lot of deferrals were kicked to.
 

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I am wondering how much the drop/change in the RE market (housing sales etc) & activity in the coming 1/4 will affect earnings in August.
 

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I try to hold about a third of my Canadian equity in banks. Sold most of them last last year ("nice profit to be made") and so far have only bought back half of that amount - roughly equal split of BMO and TD. Contemplating buying more - either now or some time soon. Should I just buy more of those two - or do people recommend other banks. Opinions (or even facts) welcome.
 

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I try to hold about a third of my Canadian equity in banks. Sold most of them last last year ("nice profit to be made") and so far have only bought back half of that amount - roughly equal split of BMO and TD. Contemplating buying more - either now or some time soon. Should I just buy more of those two - or do people recommend other banks. Opinions (or even facts) welcome.
You asked for opinion :)

I've been long on RY and BNS for years, both of which have treated me well. I've trimmed the holdings as they rose to the point where both the % of each of my portfolio was getting too high, and my synthetic DRIP wasn't all that efficient (i.e., div wasn't quite enough to DRIP 2 shares). The lowest I've trimmed back was to the point where my dividend would still DRIP a share.

I added CM to the mix earlier this year as it has been the most underperforming of the Big 5 for the last little while; I added to it again (doubled my relatively small position) about a month ago.
 

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I'm long on cdn banks. I'm a buy and hold investor - I try to buy when others sell. so far, so good. But, given the news I'm reading, I'm not buying much of anything soon. Having read Rosenberg's article in the Globe and Mail this morning had me reflecting on recent events - he is of the opinion that 1. there is still no vaccine - only the hope of a vaccine., and 2. US is in a very fragile state presently, and 3. election for dems has not been factored in. he expects this will come to a by around Labours Day (Sept 2020). I'm not a buyer, nor am I a seller. Build cash, and wait.
 

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Hopefully the big Canadian banks can continue paying out their high dividends. BMO/TD/SCOTIA are still currently posting dividends of 5-6%.
 

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It's OK to hope. I am less inclined to assume that banks and others will maintain the status quo around dividends etc. Laurentian Bank (LB) cut their dividend by 40%. They are not among the top 5 - so not a big concern - but still a bank.
 

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It's OK to hope. I am less inclined to assume that banks and others will maintain the status quo around dividends etc. Laurentian Bank (LB) cut their dividend by 40%. They are not among the top 5 - so not a big concern - but still a bank.
They're also much smaller. But I'm more interested in them now.

I think that certain groups who depend on dividends would be upset if they're cut.
I believe that the government will work to ensure the banks keep paying their dividends.

Look at how the government is ignoring consumer rights for the "health" of the airline industry.
Do you think they'll let the banks get a ding on their record of decades of stable dividends?
 

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I don't know what the future hold. History suggests that banks always pay dividends - so history says no. Consumer debt, unemployment, and govt handouts have skyrocketed tho. when pandemic ends things will become clearer I think, but problems will not go away.
 
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