Best Canadian Bank Stocks & Dividend Updates

Intro today ladies and gentlemen if you are like me you're Canadian you love dividends there's no better place to look right now than the Canadian financial sector with these Canadian banks that are yielding anywhere from four to six damn percent a lot of these are underperforming the S P 500 this year and I thought it'd be fun to analyze some of the earnings that just dropped because this is a very pivotal earnings season for these Banks we had some light shown through Bank of Nova Scotia which is dropped earnings today we noticed that Royal Bank is announced they're going to be purchasing the Canadian counterpart of HSBC for 13 damn billion dollars but we're going to quickly scan through all these Banks we're going to see the current dividend yields the payout ratios and how they've been so resilient through these tumultuous markets if that's a conversation you think you'd appreciate hit that like button because I have huge exposure to these Canadian Banks through the ETF vdy but before we get into it folks I also want to point out that I am analyzing a lot of the financial sectors POW & MKP Dividend Stocks right now because I think the banks give you good diversity through loans wealth management a lot of other aspects to the Canadian banking sector but some of these really fixate dated like sector focused Financial stocks like power corporation which is primarily fixated on wealth management they do own a decent portion of wealth simple this big trading platform in Canada they have been just getting hammered here the current yield on this guy is around six percent it's trading down about 20 year to date and when it announces last earnings it got hit really bad I mean revenues dropped 27 year over year now is a prevalent time to really start analyzing these and if they are really true buying opportunities that will see some resiliency coming out of this you know recessionary interest raising environment period but take a look at mcam Mortgage Group another interesting financial sector that's primarily fixated on third party loans private lending they get higher uh interest rates out of obviously these private mortgages and this stock jumped up dramatically over the last month I mean it's up 30 from the recent lows paying 8.54 a lot more volatile of a stock but for people looking for cash flow today if you're in a retirement phase I'm going to start analyzing these a lot more heavily and do a specific video so consider subscribing for those updates but let's talk about some of these Banks Canadian Imperial Bank CM Stock Canadian Imperial Bank this one has stepped back five years in time I can't get over that you know it's five year chart is basically flat year-to-date uh you know underperforming the S P 500 down 19 almost 20 percent here with a current starting yield of 5.16 this thing has been a dividend Beast even among some of the larger Banks here guys look at this they've increased the dividend within two quarters um over the last year in a bit I mean they did a 10 raise coming toward the end of 2021 and right at the second quarter of 2022 they did again raise it 3.11 and taking a look at the current payout ratio guys I mean they're only paying up 45.58 they have a lot of leeway in the current you know Market where we're going to start seeing some of these loans some of these credit cards not get paid there's going to be some people obviously defaulting on those which we'll look at when we're analyzing Bank in Nova Scotia but take a look at this because institutionally held most of these banks are largely held their institutions so you think you get a little more stability from the Toronto Dominion Bank TD Stock stock price but who knows right maybe these institutions are starting to scale them down a bit holding the more resilient ones like Toronto Dominion Bank which currently yields around four percent down about nine percent year to date is outperforming the S P 500 and on a five-year basis much more stabilized and that's probably because Toronto Dominion Bank gives you nice diversity between Canada and the US I think Canadian Imperial bank is primarily fixated in Canada and on mortgages alone whereas Toronto Dominion Bank does a lot of things they have TD Ameritrade I mean they do all the same stuff Canadian apparel Bank does just much more Diversified and taking a look guys they did increase it quite a little bit coming into 2021 but uh or toward the end of 2021 into 2022 but they haven't increased it yet again like Canadian apparel bank has so we've been getting more dividend increases from Canadian apparel bank but nonetheless these things they all fall kind of similar in suit take a look because the payout ratio on this one's 43.85 and again help from institutions about 57 taking a look Bank Of Montreal BMO Stock at Bank of Montreal now this one surprisingly has been insanely resilient this one got hit probably of the hardest during that March 2020 crash largely related to their loan exposure to the oil sector and now that oils come back so dramatically it really rallied this stock with it taking a look currently paying 4.26 percent with probably one of the lowest p e ratios amongst all the banks right now and just taking a look at the dividend increases this one has just crushed it unlike all the other Banks guys take a look coming into 2022 the first January basically increasing the dividend 25 I mean this is insane right and then they increased it again another 4.5 percent in a single year within two quarters they increased this almost 30 freaking percent and this is a bank keep in mind none of these Banks cut their dividends over the last decade it's kind of insane to think that they've been that resilient not only through the 2008 financial crisis the March 2020 crashes there's a reason these things are dividend Kings and the payout ratio on is lower than the giant that is TD it's only paying out 30 guys a lot of stability here with institutionally held about 51 so let's take a look at National Bank these are probably the less known Bank National Bank Of Canada NA Stock because they're huge this I notice I don't talk about them as much but take a look because this one has also been probably the best performer of the bunch up 53 in the last five years pretty much flat on the year already paying 3.76 and just keep an eye on these PE ratios guys because they're very very low I mean bmos PE right now is 7.8 roughly which is just crazy but taking it back into National Bank guys let's take a look at the dividend increases very similar to just crushing it baby look at that 22 in January and then again increased it another five percent so this one's probably the best dividend increase or next to and again these Banks guys I mean go back through these histories and these dividend increases have been so damn resilient and taking a look at the payout ratio on this one also 34.6 and again mostly institutionally held not as much as the other banks at about 35.28 but let's talk about some of Bank Of Nova Scotia BNS Stock & Earnings the earnings here Bank of Nova Scotia is the first one to drop earnings we're gonna get earnings out of the rest of the banks through this week currently Bank in Nova scotia's paying about 5.86 also very low p e ratio and on a five-year basis it's been one of the worst performers worse than Canadian Imperial it doesn't start looking good until you get into this long chart so this could potentially be a really good buying opportunity because when I looked at the earnings they actually came in line with expectations here I mean look at this the EPS actually beat expectations and basically revenue is just slightly missed by like point three eight percent and taking a look before we analyze the earnings a little deeper again dividend increases they've done two this year not as resilient as or national bank but again guys we're not talking about any dividend cuts and from a payout standpoint let's take a look at 47 payout ratio and again mostly held by institutions but taking a look at the earnings let's just take a look at the net interest income itself because this is what they're going to benefit most from In the interest raising environment As Time proceeds because we can also see that these loan loss Provisions have been going up quarter over quarter obviously there's some fear baking into these Banks so they want to have some extra Capital aside it looks like they put 529 million aside just in this quarter alone 412 last quarter and then going from 2021 when everything was so resilient they only put 168 million away so these last two quarters obviously a little bit more fear baking in but from an interest uh income standpoint guys we can see they went from about 4.67 to about 4.62 a billion so a slight just about nominal just flat considering last year they did about 4.2 billion but if we take a look at the year end guys year over year they are seeing quite a little bit of an increase of over a billion dollars which is nice to see but this is just kind of the nominal environment we're living in I think this will increase as the economy continues to come back through International banking super resilient here I mean take a look at this because we can see the net interest income guys basically went from 1.75 billion last quarter to 1.8 and over last year it was 1.58 billion so they're definitely seeing a really nice healthy increase from the international standpoint with a lot of exposure to Latin America that's kind of like their International exposure for Bank of Nova Scotia but taking a look at also what's really fascinating data to me guys is basically the income and their total assets because this is where we can actually see the loans outstanding and let me Zoom this in so you guys can see this crystal clear so Residential Mortgages currently make up and again we're just going to be taking a look at the last quarter here from quarter over quarter and just take a look at this because Residential Mortgages went from 343 billion to 349 billion which is quite astonishing considering at this time last year they only have 319 billion so there's still a lot of mortgages growing on the bottom line personal loans we can see actually continue to increase here taking a look at credit cards these have actually been increasing business and government guys so I can imagine they're doing some loans for you know businesses in government have also been increasing so across the board people still get known debt man people still taking loans this will only Bode better for them if they can survive and continue to do well like they have been in these last few quarters this earnings was actually very very resilient Royal Bank here guys which can be posting earnings tomorrow we can see is probably one of the higher Royal Bank RY Stock & HSBC Acquisition p e ratio companies because it is Canada's largest bank so it's no surprise that it has had some of the most stability you know Toronto Dominion Bank uh Royal Bank they're really heavily exposed in these ETFs that I buy so they're my two most exposed Banks and I think the ETFs are honestly what offer the most stability because anytime people like me cost average into those ETFs they do end up just trickling to these top weighted Banks so that's why you get some of the more resilient you know stability and less volatility out of the stock price itself and Royal Bank paying a current yield to 3.85 just taking a quick look at this guys we can see that they also increased it twice uh pretty much within the last few quarters since the beginning of 2022 which is pretty nice to see again not as much as or national bank but we're not complaining here considering how stable the stock price has been itself and taking a look pay a ratio 43 percent uh 48 held by institutional funds and Royal Bank big news this is really going to boost their earnings uh this is probably absolutely incredible for us holding Royal Bank or having major exposure to it is this HSBC of Canada this 13.5 billion dollar deal they're purchasing 130 branches across Canada apparently Royal Bank Canada has agreed to buy the Canadian arm of multinational Bank HSBC RBC chief executive Dave McKay said that the deal offers the opportunity to add complementary complimentary business and client base this also positions us as the bank of choice for commercial clients and international needs newcomers to Canada and affluent clients who need global banking and wealth management capabilities which is pretty incredible because I think Royal Bank has primarily been fixated in the Canadian sector they're kind of wanting to get some of that Global exposure because you know that's what TD has they're very exposed to Canada the US you know most of these banks are trying to expand internationally because they're seeing that growth again like we're seeing at a Bank of Nova Scotia so this deal is going to be massive and I think we're going to start seeing it hit within the next couple quarters so 2023 we should start seeing a pretty nice uh increase here they posted an operating income of more than 1.1 billion in the first half of this year alone so do expect to see a really big Revenue bump coming out of Royal Bank because of this recent purchase but I want to pass the question off to you what do you guys think about the Canadian banking system or obviously I think every Canadian should buy them like Pokemon on cards you kind of just got to collect them all hold them forever I don't really think there is more resilient Canadian dividend stocks than out of our Canadian Banks but let me know what you think in that comment section below