...but if we have the soundest financial system in the world, doesn't it seem like now might be a good time to buy Canadian financials?
3 comments:
Anonymous
said...
Depends on your time frame and risk tolerance. I have a hard time seeing dividend cuts, given the efforts at raising capital a number of banks have put in. There's going to be some hard slogging earnings wise for a good while, but there's nowhere near the risk for these banks compared to their American or European cousins. The yields are outstanding, and the odds of a dividend cut is probably 10% or so, though it has largely been priced in. Pile in now, and in a few years the rewards will be there, no question. There will be significant turbulence in the interim though.
Not intended as investment advice, because obviously I'm talking my book here.
I have to agree- the dividend yield is mighty juicy at these levels and I don't mind getting paid while waiting for the sector to bounce back. Even getting back to somewhat normal levels means pretty substantial capital appreciation.
Views expresed here are mine alone and should not be attributed to my employer or colleagues. I make no assurance of the accuracy or validity of any of the information on this blog and will not be held liable for errors, omissions, or damages arising from use of information presented on this blog.
3 comments:
Depends on your time frame and risk tolerance. I have a hard time seeing dividend cuts, given the efforts at raising capital a number of banks have put in. There's going to be some hard slogging earnings wise for a good while, but there's nowhere near the risk for these banks compared to their American or European cousins. The yields are outstanding, and the odds of a dividend cut is probably 10% or so, though it has largely been priced in. Pile in now, and in a few years the rewards will be there, no question. There will be significant turbulence in the interim though.
Not intended as investment advice, because obviously I'm talking my book here.
I have to agree- the dividend yield is mighty juicy at these levels and I don't mind getting paid while waiting for the sector to bounce back. Even getting back to somewhat normal levels means pretty substantial capital appreciation.
financialsector.blogspot is for you, then!
Also, TD reports 700 million in PROFIT this quarter, down from 900 million, but beating analyst's expectations.
Post a Comment