Most of the banks (well, at least the ones that I own), have released their quarterly numbers and the great news is — they all increased their dividends! The beauty of increasing dividends is that it helps set the floor price for the stock. So as long as the dividend keeps increasing, the price of the stock should also increase.
The banks that I own and drip increased their dividends as follows:
Bank of Nova Scotia (BNS) up $0.03 to $0.39. Increase of 8.3%.
Bank of Montreal (BMO) up $0.09 to $0.62. A whopping increase of 17%!
CIBC (CM) up $0.02 to $0.70. An increase of 3%. Even that is pretty amazing after the whole Enron fiasco!
If you check out Mergent’s Dividend Achievers, you will see that BMO, BNS, CM, NA (National Bank of Canada), RY (Royal Bank) and TD (TD Bank) are all on the list.
If I could only own one stock, it would most definitely be a bank stock.
2 users commented in " Consistent Money Machines (aka the Banks) "
Follow-up comment rss or Leave a TrackbackWhile I agree that the dividend yields are attractive for Canadian banks, I’ve recently listened to an analyst on ROBTV mention that the majority of Canadian banks are trying to expand into the US, and that he thinks that in the US much larger banks will prove to be very tough competition. Much like what happened to Canadian tire when they tried to enter the US market.
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