Thursday, April 1, 2010

banks have finger on dividend button

Canadian bank CEOs have been going out of their way in the last few weeks to hint at upcoming dividend increases. The top brass at Royal Bank of Canada (RY), National Bank of Canada (NA), and even high pay out ratio, Bank of Montreal (BMO) have been expressing their thoughts on dividend raises lately. All three CEO's have essentially hinted at dividend raises in the near future. While regulation is holding them back a bit I am looking forward to the resumption of dividend growth in Canadian banks very soon. These canuck banks are overcapitalized! Share the wealth...

Here are the current dividend yields:

Royal = 3.4%
National = 4.0%
BMO = 4.5%
TD = 3.2%*
Bank of Nova Scotia = 3.9%
CIBC = 4.7%

*TD is my favourite bank and they make up the greatest portion of my portfolio (about 12%). It is interesting to note that they have actually trademarked the word 'WOW' in the US. They are very customer service focused in Canada and the US. The stock has given me a return on investment of over 39% including dividends since April of 2008.

3 comments:

Dada said...

MG:
I enjoyed reading your posts. I am eagerly waiting for the Canadian banks to raise their dividends again. I have Royal, Scotia and TD*.

*TD is the most conservative bank in Canada and is also my favourite bank to invest in. It is also the biggest part my portfolio (15%).

corporatebully said...

Royal Bank of Canada (RBC Bank) : Corporate Bully

$100,000 - MISTAKE (FISHERMEN'S LOAN)


I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment.

There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.

http://www.pfraser.blogspot.com

http://www.corporatebully.ca

http://www.youtube.com/CORPORATEBULLY

http://www.p2pnet.net/story/17877

Help me fight the Royal Bank of Canada (RBC Bank) by closing your account.

"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"

Financial Cents said...

@MG - I really hope you're right!! I have positions in BMO, BNS and CM - go dividends go! Good, encouraging post!