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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello Peter
I recently sold a large Ontario bond that was yielding 4.4% and need to replace it with very secure dividend yielding equities in the 4% yield range. I have already bought some Fortis FTS and a small amount of Bonterra BNE. Now I am thinking of adding a bank and I see Commerce CM and National Bank NA are the cheapest banks and both have P/Es just over 10. The yields are both 3.97% and 3.98% respectively. I see Laurentian LB yields 4.3% but at a P\E of 11.6 and is presumably less secure.
When is CM likely to raise it's dividend?
I am inclined to choose CM and I would appreciate your advice and comments on which bank to choose and why.
Paul
Read Answer Asked by Paul on May 26, 2014
Q: What are your thoughts on CIBC? (cm)

For whatever reason, CIBC seems to be the black sheep of the Canadian banks? Why is that? While TD and BNS seem to be talked about constantly, few seems to talk about CIBC.

Comparatively, the other Canadian banks are trading well above 2007 highs while CIBC still trades at a 15% discount to 2007 highs.

Given its strong earnings report today and 2 dividend raises in the last year, CIBC looks cheap compared to peers. What do you think?

Thanks
Read Answer Asked by michael on February 28, 2014