I like CIBC at today's price but there may be more to come.
Canadian banks are some of the most conservative and solid in the world which is why we already own some of this one. But, the monthly chart suggests that if another down-leg starts, this one may see prices in the low 70's.
Who the hell really knows. At the current price as I write this of $87.50, the stock has a yield of 6.83% They have not missed a dividend since 1868! Payout ratio is 50.62% - in line with it's average or the last 5 years. So I like it.
The risk right now would be that the insanity over this virus keeps people in their homes for a while - like Italy that just shut down the entire country. apnews.com/3ff579e06...428f0bc993c0a98c001d The premier has asked all 60 million inhabitants to stay home. That would cause more than a few missed mortgage payments. If the same happened here, this would naturally be a bad thing for a bank stock. A big hit in earnings could see the dividend cut in half maybe - still a heck of a lot better than a GIC or bonds with a 30% + gain potential for the current price just to recover to November 2019 highs.
In the long run, this will run it's course and things will recover. I don't think we are going all Mad Max. We own some but I also have a an open order with a limit at $72.50 because I am a greedy bugger (and a little paranoid)
Canadian banks are some of the most conservative and solid in the world which is why we already own some of this one. But, the monthly chart suggests that if another down-leg starts, this one may see prices in the low 70's.
Who the hell really knows. At the current price as I write this of $87.50, the stock has a yield of 6.83% They have not missed a dividend since 1868! Payout ratio is 50.62% - in line with it's average or the last 5 years. So I like it.
The risk right now would be that the insanity over this virus keeps people in their homes for a while - like Italy that just shut down the entire country. apnews.com/3ff579e06...428f0bc993c0a98c001d The premier has asked all 60 million inhabitants to stay home. That would cause more than a few missed mortgage payments. If the same happened here, this would naturally be a bad thing for a bank stock. A big hit in earnings could see the dividend cut in half maybe - still a heck of a lot better than a GIC or bonds with a 30% + gain potential for the current price just to recover to November 2019 highs.
In the long run, this will run it's course and things will recover. I don't think we are going all Mad Max. We own some but I also have a an open order with a limit at $72.50 because I am a greedy bugger (and a little paranoid)
Rob