All of the Canadian banks that have already reported Q1 earnings have beat estimates causing a nice pop. All six major banks have dividend yields in the 6%-11% range. Most of these banks have little to no exposure to the USA housing market (i.e. BNS). These banks have repeatedly stated they are well capitalized and will not need any government assistance, even if conditions worsen in 2009. How can you afford NOT to own any of these?!?!?
BNS and TD here. I have a personal distaste for BMO, which is probably illogical but I avoid it all the same. Just something in the back of my mind about it, can't recall what. RY is also fine.
I like TD as well. You really can't go wrong with any of them at this point. I have not touched BMO for no reason in particular but the 10.86% yield sure is juicy!
Oh Canada. They're dividends are safe, but the stocks move in step with the U.S financials. So it's pretty ridiculous.
I think the OP's point is partly that strong bank stocks which are getting beaten down along with the dogs in the sector represent an opportunity (I'm not specifying time frames, just suggesting an opportunity). I don't think the idea is 'ridiculous', necessarily. You've clearly thought this through and arrived at a different conclusion. That's what makes a market, right?
Yes definately. But who says the U.S financials can't get beaten down even more? And of course, the Canadian financials will likely follow the same direction as they have since this mess started. Even though they may have no part of it. What I meant was ridiculous was that the U.S financials decide the direction of Cnd bank stocks. As a Canadian myself, knowing how strong our banks are, it pisses me off, but as a trader, I really don't care. I'm trading what's happening, not what ought to be happening. haha I don't even trade CND stocks anymore, G.L guys. Look's like you had a good day. Edit: Did I get myself into a thread with investors, or traders? I'm guessing the former, so have a good 10 years guys.
Canadian banks are a thing of beauty as is the Canadian economy. Probably the best managed economy in the world. I actually like Canada and Australia and have been buying the EWC/EWA think they will pull out much sooner than US