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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: I noted an earlier answer that preferred life companies over banks at the moment, for a new investment. I am currently overweight financials and dont want to leave the probable dividend stream. However, should I be thinking about divesting banks to a degree and buy life cos? If so, which banks to punt ( don't be shy, I have them all) and which life cos to buy? As always, appreciate your collective calm.
Read Answer Asked by alex on May 04, 2020
Q: Hi,
Could you please comment on commercial impaired loan growth with respect to the Canadian banks prior to the Cov 19 crisis ? Have they increased their reserves appropriately ?
Thanks
Read Answer Asked by Dineth on April 27, 2020
Q: I have roughly equal weights in NA, RY and BNS and a half position of TD in a TFSA. Even at the worst point of the decline (so far), I have stayed above water on on all but BNS.

As a retiree who loves his solid dividends, the banks are attractive to me and my total holdings are likely higher than you would recommend. I am wondering if I should use the correction to move out of NA and redistribute the funds into RY and BNS. (No room to add money to the TFSA.)

Your thoughts?
Read Answer Asked by Dave on April 24, 2020
Q: Hi. I see in many responses related to Canadian banks that when you reply that you prefer bank a, b, c over bank X, is the a, b, c in order of preference? Sometimes the order changes from different responses.
Would you be able to list the Canadian banks in order of preference for a 5-10 year hold. I understand that in 6 or 12 months the order may change, but I'm looking today what it would be. Thanks
Read Answer Asked by Marco on April 15, 2020
Q: How do you rank these stocks for an investor starting a position in Canadian banks (minimum 5 year horizon)? Thanks.
Read Answer Asked by Ben on April 13, 2020
Q: How would you rank the banks? Strongest to weakest in this environment.
I'm considering selling some far "out of the money" puts to get some income. And if I get assigned, so be it. I'll suffer with a few bank positions yielding close to 8%. Geez, we're talking about bank stocks! I figure if they get into trouble we're ALL in really really BIG trouble.
For example, TD at $40 would yield me 7.9% in dividends. That's like 10.2% in interest. Or RBC at $58 would yield me 7.4% in dividends.
So which Canadian banks would "crack" under pressure and which wouldn't.
Thanks and take care!
Read Answer Asked by Carlo on April 07, 2020
Q: I plan to retire in 3 years and want to set up a portfolio of dividend paying stocks for my retirement in a non- registered account. Can you please give me your thoughts if I buy the following in 20% amounts at each S&P drop of 3-5% over the next 1-3 months. CM RY, NA, CWB, BCE, T, H, BIP, BEP, BAM.
Are there any others you would recommend today?
Read Answer Asked by Vineet on March 31, 2020
Q: I have just read that the European Banks are going to stop paying dividends and that the US banks are under a lot of pressure to follow suit. Do you think that The Canadian Banks will also suspend dividends?
Read Answer Asked by shirley on March 31, 2020
Q: Hello 5i--I'm looking at these companies for the dividend yield. A bonus would be their recovery to previous highs. What would your ranking be for the three to achieve these goals? Thanks, Ron W
Read Answer Asked by RON on March 18, 2020
Q: Which Canadian bank looks most attractive right now?
Read Answer Asked by sean on March 17, 2020
Q: What would be the top 3 Canadian banks have the best/quickest rebound potential ? thanks
Read Answer Asked by Marco on March 11, 2020
Q: Thoughts on the CN banks? Low rate environment; Cdn economy hampered economically due to low oil and lacklustre mtg/productivity . How does this factor for growth in our banking oligopoly? I would think the 4-5% dividend yield is relatively safe but I cannot see where the stock price growth would come from other than wealth management divisions and perhaps trading which is somewhat risky. Thanks.
Read Answer Asked by Richard on March 06, 2020
Q: Assuming we get a rate cut of 0.5% by Poloz tomorrow, or, over the next few months, how bad will that impact CIBC's NIM and can we estimate the hit on their earnings? Is one bank more exposed to NIM than others? Regional banks are not reacting well right now. Thank you.
Read Answer Asked by Matt on March 04, 2020
Q: If you were to pick 1 Canadian bank for a long term hold (10 - 15 years), which one would you choose? Also, what order would you rank these banks?
Read Answer Asked by Zeya on January 16, 2020
Q: National Bank has been on a bit of a tear lately and I am sitting on a rather nice 47% gain. When I value Canadian banks { long term } I generally consider them fairly valued when the yield is around 4% and on sale when they approach 5%. National being the smallest of the big five plus one I expect a slightly higher yield. So at 3.48% I am wondering it is overvalued and I should switch to a different Canadian bank. What are your thoughts on the matter ? And if you concur which bank { I already own BNS } would you suggest if you agree ?
Read Answer Asked by Garth on January 16, 2020
Q: Hi, I have had fsz for approximately 3 years, b.e is 13.74 and have been thinking if it has dropped about $4 in this market , what will happen in a down market?
My other option was NA bank which has been a lost opportunity. Should i sell fsz (7%) and buy na, or sell half and buy half na. Or just stay the course?
I think fsz is ok, for dividend but getting a little worried with where it’s at after such a great market the last 3 years. I do like to keep a stock 3+ years to give it a chance to work. With a good market and good management I find it usually works out. In a poor or flat market of course all bets are off. also I do have TD in my financial sector which has done well.
Thanks


Read Answer Asked by Brad on December 11, 2019
Q: I have read that Canadian banks this week are gearing up to report their slowest annual earnings growth since the global financial crisis.
Do you anticipate a negative market response to my holdings listed above? With all 3 at 52-wk highs, how would you rank them for a continued "Hold"?
Read Answer Asked by Ted on November 26, 2019
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