#TSXCM

[tradevisions]

Discover TSX:CM - Key Updates On Financial Growth And Market Activity

Discover the latest updates on TSX:CM, a significant player in the banking sector. Learn about its market activity, strategic developments, and role in the Canadian economy. TSX:CM continues to shape trends within the financial sector, offering valuable insights into its ongoing impact.

[biedexcom]

Bank Earnings Preview: CIBC (TSX:CM)#stockmarkets#bank #cibc #earnings #preview #tsxcm

[goldcoins0]

Should You Buy CIBC (TSX:CM) Stock for the 7% Dividend Yield?

https://timorinvest.com/2020/05/25/should-you-buy-cibc-tsxcm-stock-for-the-7-dividend-yield/?utm_source=rss&utm_medium=rss&utm_campaign=should-you-buy-cibc-tsxcm-stock-for-the-7-dividend-yield Timor Invest

from https://investingold0.wordpress.com/2020/05/25/should-you-buy-cibc-tsxcm-stock-for-the-7-dividend-yield/

[goldira01]

The share price of CIBC (TSX:CM)(NYSE:CM) is down to the point where income investors can pick up a 7% dividend yield.

Let’s take a look at the current situation in the economy and the potential turnaround timeline to see if CIBC deserves to be on your buy list right now.

Housing threat

Canadians entered the downturn with record levels of debt. The sharp rise in unemployment now risks triggering a meltdown in the housing market.

CIBC has the highest relative housing exposure among the big Canadian banks, so it would probably take a larger hit than its peers if prices crash. At the end of fiscal Q1 2020, CIBC had roughly $220 billion in Canadian residential mortgage loans on its books. At the time of writing, the bank has a market capitalization of about $37 billion.

By comparison, Royal Bank finished Q1 2020 with $300 billion in mortgages but has a market capitalization of $120 billion.

The latest report by Canada Mortgage and Housing Corporation (CMHC), a government agency that insures mortgages, indicates that 12% of Canadian mortgages have received deferrals. CMHC says the percentage could rise to 20% in the coming months. Delayed payments put cash flow pressure on the banks, and in the event the property owners are still unable to pay after the six-month deferral expires, the market could see a flood of listings. The resulting drop in prices might put many recent buyers under water.

CMHC predicts the average Canadian house price could drop 9-18% over the next 12 months.

Government aid

Measures put in place by the government to provide businesses and households with financial support should reduce the number of bankruptcies. In addition, CMHC announced plans to buy buying up to $150 billion in mortgages to ensure the banks have adequate liquidity to keep lending. This is expected to mitigate the impact.

As the provinces slowly re-open the economy, the hope is that jobs will return quickly, and most people will have the cash flow needed to pay bills again by the end of the year. The next few months are going to be difficult, but the hope is that 2021 will bring a strong economic recovery.

Economic outlook

A V-shaped economic rebound would likely avoid a crash in the housing market. A U-shaped recovery might result in the CMCH’s prediction landing somewhere in the middle range. The worst-case scenario would be the dreaded L-shaped depression where no rebound occurs for the next few years.

The IMF thinks a solid global recovery will occur in 2021. Stephen Poloz, the governor of the Bank of Canada, also has a positive outlook. He recently said he thinks the Canadian economy will recovery quickly. Poloz indicated the Canadian economy is currently tracking the central bank’s best-case scenario for the crisis.

Should you buy CIBC?

The dividend should be safe at all the large Canadian banks, including CIBC. The company held the distribution steady during the Great Recession and the CEO indicated the company isn’t considering a cut.

CIBC trades at $82.50 per share and provides a 7% yield at the time of writing. A drop back below $70 could happen on another major market correction, but the stock appears reasonably priced today.

If you have some cash looking for a reliable high-yield pick, CIBC deserves to be on your radar. Five years from now, the stock price should be back above $100, and you get paid well to wait for the rebound.

The TSX Index is home to many top dividend stocks that appear cheap right now.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada‘s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Andrew Walker has no position in any stock mentioned.

[phaidoncom]

via Timor Invest

[investingold0]

Timor Invest #investing #goldinvestment

[braydengormlyca]

Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today?

CIBC finished fiscal Q1 2019 with total Canadian residential mortgage exposure of $223 billion, which is higher than TD on a relative basis when you …

The post Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today? appeared first on Consumer-Mortgage.

source http://consumer-mortgage.com/should-toronto-dominion-bank-tsxtd-or-cibc-tsxcm-stock-be-on-your-buy-list-today/ source https://consumermortgageca.blogspot.com/2019/04/should-toronto-dominion-bank-tsxtd-or.html

[aaltjebarisca]

Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today?

CIBC finished fiscal Q1 2019 with total Canadian residential mortgage exposure of $223 billion, which is higher than TD on a relative basis when you …

The post Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today? appeared first on Consumer-Mortgage.

from Consumer-Mortgage http://consumer-mortgage.com/should-toronto-dominion-bank-tsxtd-or-cibc-tsxcm-stock-be-on-your-buy-list-today/ source https://consumermortgage.tumblr.com/post/184012858505

[consumermortgage]

Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today?

CIBC finished fiscal Q1 2019 with total Canadian residential mortgage exposure of $223 billion, which is higher than TD on a relative basis when you …

The post Should Toronto-Dominion Bank (TSX:TD) or CIBC (TSX:CM) Stock Be on Your Buy List Today? appeared first on Consumer-Mortgage.

from Consumer-Mortgage http://consumer-mortgage.com/should-toronto-dominion-bank-tsxtd-or-cibc-tsxcm-stock-be-on-your-buy-list-today/

[calgaryrealestate]

They were hoping for a collapse of the nation's once red-hot real–estate market in which the lender has a lot of stake. But after more than year of wild … Provide it by Tips about Real Estate Structure Finance

https://calgaryrealestatelistingsblog.wordpress.com/2018/08/07/is-the-worst-over-for-canadian-imperial-bank-of-commerce-tsxcm-stock/

[goldcoins0]

Royal Bank (TSX:RY) to CIBC (TSX:CM): Are Canadian Bank Dividends Safe?

https://timorinvest.com/2020/04/16/royal-bank-tsxry-to-cibc-tsxcm-are-canadian-bank-dividends-safe/?utm_source=rss&utm_medium=rss&utm_campaign=royal-bank-tsxry-to-cibc-tsxcm-are-canadian-bank-dividends-safe Timor Invest

from https://investingold0.wordpress.com/2020/04/16/royal-bank-tsxry-to-cibc-tsxcm-are-canadian-bank-dividends-safe/

[goldira01]

The 2020 market crash is giving Tax-Free Savings Account (TFSA) and RRSP investors an opportunity to get above-average dividend yields from the Canadian banks.

Are bank dividends safe?

The share prices of Canada’s five largest banks fell off a cliff in the first four weeks of the stock market correction. While the rebound off the lows is encouraging, some analysts expect the market to retest the March nadir.

Let’s take a look at how the bank stocks have traded so far in the crisis to see if one should be on your dividend buy list.

Royal Bank saw its share price fall from $109 to $72. At the time of writing, it trades at $86.50 and offers a 5% yield.

TD fell from $76 per share to $49 and is now trading at $58.50 with a 5.4% yield.

Bank of Nova Scotia slipped from $74 to $47 per share. The stock trades close to $55 at writing and gives investors a yield of 6.5%.

Bank of Montreal went from $104 per share in January to $56 in March. It has bounced back to $73, but investors can still get a yield of 5.8%.

Finally, CIBC plunged from $110 per share to $75. It currently trades around $83.50 at writing and serves up a juicy 7% yield.

Bank risks

One way to gauge the market’s risk assessment is to look at the trailing 12-month price-to-earnings (PE) multiple the market is giving each of the banks.

Earnings are going to take a hit in 2020, and trying to put an accurate valuation on the banks right now is difficult, but the metric gives investors a sense of where the market might see the most potential pain.

The lower the multiple, the higher the perceived risk. You would also expect the dividend yields to correspond, as investors want to be paid more for taking on riskier investments.

CIBC

CIBC trades at 7.5 times earnings, the lowest PE multiple of the group. The bank also offers the highest dividend yield.

CIBC has the largest relative exposure to the Canadian housing market, which might explain the low valuation. In the event that the spike in unemployment triggers a wave of mortgage defaults, house prices could tank, which would likely hit CIBC harder than its peers.

Bank of Nova Scotia

Bank of Nova Scotia trades near 8.1 times earnings and provides the second-highest dividend yield.

Investors are likely worried that the large Latin American operations could take a significant hit due to the slowdown in the global economy. Uncertainty surrounds the impact of the pandemic on the core Pacific Alliance markets of Mexico, Peru, Chile, and Colombia, where the bank has the bulk of its foreign operations. The international group accounts for roughly 30% of Bank of Nova Scotia’s net income.

Bank of Montreal

Bank of Montreal trades at 8.3 times earnings and its dividend yield falls in the middle of the pack.

The bank’s large U.S. business is primarily located in the Midwest states. The U.S. has the largest recorded coronavirus outbreak of any country and the economic fallout could hit Bank of Montreal’s American operations particularly hard.

TD

TD trades at 8.9 times earnings.

While Canada’s number two bank by market capitalization is often cited as the safest pick, its large U.S. presence could be cause for some concern. TD operates more branches in the United States than it does in Canada and derives more than 30% of net income from the U.S. business.

Royal Bank

Royal Bank has the highest PE ratio at 9.6 times earnings. The market appears to think it is the lowest risk play right now. Royal Bank reported the best return on equity and highest CET1 ratio among its peers in the most recent quarter and is known for its balanced revenue stream.

Which Canadian bank stock should you buy?

The dividends should be safe at all of the top five Canadian banks.

They maintained the payouts through the Great Recession and have strong capital positions to ride out the downturn. In addition, the government is putting measures in place to ensure the banks have adequate liquidity to keep lending.

Ongoing volatility is expected, but buy-and-hold income investors should be comfortable owning any of the stocks.

If you want the highest yield and are willing to take on added risk, CIBC offers a very attractive yield. Investors who still want above-average returns with less perceived risk might want to make Royal Bank the first choice today.

An equal investment across all five banks at the time of writing would provide an average yield of close to 6%.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada’s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share.

Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.

Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Andrew Walker has no position in any stock mentioned.

[goldcoins0]

TFSA Investor: Is CIBC (TSX:CM) Stock a Buy for the 5% Dividend Yield?

https://timorinvest.com/2020/01/22/tfsa-investor-is-cibc-tsxcm-stock-a-buy-for-the-5-dividend-yield/ Timor Invest

from https://investingold0.wordpress.com/2020/01/22/tfsa-investor-is-cibc-tsxcm-stock-a-buy-for-the-5-dividend-yield/

[goldira01]

The TSX Index is trading near its all-time highs, which has driven up stock prices and put pressure on the yields investors can get on some of the more popular dividend stocks.

Fortunately, there are a few deals available among the top companies in the Canadian stock market. Let’s take a look at one stock that might be an interesting pick today for an income-focused TFSA portfolio.

CIBC

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) trades at just 9.7 times trailing 12-month earnings, compared to multiples in the range of 11-12 times for most of its large Canadian peers.

CIBC arguably carries more risk than the other members of the Big Five banks due to its large exposure to the Canadian residential housing market.

CIBC finished fiscal 2019 with a mortgage portfolio of more than $220 billion and has a market capitalization of about $50 billion.

This compares to Royal Bank, which finished fiscal 2019 with mortgages of $302 billion, but is three times the size of CIBC with a market capitalization of $150 billion.

As a result, it makes sense that the market would allocate a bit of a discount to CIBC given the higher potential hit on a relative basis if the housing market crashes.

CIBC is well capitalized, with a CET1 ratio of 11.6%. In addition, the company has made more than US$5 billion in investments in the United States in the past couple of years to diversify the revenue stream. CIBC now gets about 17% of adjusted net income from the U.S., putting it at the same level as Royal Bank.

Risks

High debt among Canadians is worth watching. The average person in the country now owes nearly $1.72 for every dollar in disposable income.

In the event we hit a major economic downturn and unemployment shoots up toward levels seen in the last recession, defaults on home payments would likely rise.

That said, the economy is in decent shape and borrowing rates are expected to remain low for the foreseeable future, which should help borrowers start to get their finances in order. While a housing crash is possible, a soft landing is more likely the end result.

Opportunity

CIBC is a very profitable company. The business generated adjusted net income of $1.3 billion in the most recent quarter and return on equity (ROE) was 14.2%.

To put this in perspective, the average ROE for U.S. banks is 11-12%. In Europe, ROE is only about 6%, so CIBC is doing well. CIBC has indicated it could make additional acquisitions in the United States in the coming years, especially in the wealth management segment, which would provide more balance to the revenue stream.

Dividends

CIBC raised its dividend twice in 2019, and ongoing increases should be in line with earnings per share growth. The current payout provides a yield of 5.3%.

Should you buy CIBC?

CIBC appears undervalued right now. At the time of writing the stock trade at $108 per share, which is above the August 2018 low around $98, but still well off the 2018 high around $124.

Investor who buy now can pick up a solid yield while they wait for better days. A dip back below $100 would be viewed as an opportunity to add to the position.

5 TSX Stocks for Building Wealth After 50

BRAND NEW! For a limited time, The Motley Fool Canada is giving away an urgent new investment report outlining our 5 favourite stocks for investors over 50.

So if you’re looking to get your finances on track and you’re in or near retirement – we’ve got you covered!

You’re invited. Simply click the link below to discover all 5 shares we’re expressly recommending for INVESTORS 50 and OVER. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.

Click Here For Your Free Report!

Fool contributor Andrew Walker has no position in any stock mentioned.

[goldcoins0]

Don’t Just Buy CIBC (TSX:CM) Stock for its 5.3% Yield

https://timorinvest.com/2020/01/19/dont-just-buy-cibc-tsxcm-stock-for-its-5-3-yield/ Timor Invest

from https://investingold0.wordpress.com/2020/01/19/dont-just-buy-cibc-tsxcm-stock-for-its-5-3-yield/

[goldira01]

Canadian banks are popular for their mix of diversified assets, reliable dividends, and a surprising amount of growth in so saturated a market as blue-chip financials. However, 2019 was a tough year for banks, as they showed their cyclical nature. Value investors still have an opportunity to lock in a richer yield. Today, we’ll take a look at a Bay Street banker with a higher yield than its peers.

A 5.3% yield is what stands out when new investors building income portfolios first look at Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) in comparison with other big Canadian lenders. However there are a few more reasons to buy than just passive income. Throw in a projected 16.8% capital appreciation over the next five years, defensive market cap, and acceptable allowance for bad loans, and CIBC is a top low-risk, buy-and-hold stock.

Attractive valuation with low market ratios

Trading at an estimated 34% discount compared to its fair value in terms of future cash flow, CIBC is good value for money. Its fundamentals compare favourably with the Canadian banking sector as well. While its price to book matches the banking sector point for point, CIBC’s P/E is considerably lower, indicating a strong buy for the value-conscious investor looking to buy a bank stock once and forget it.

Are you bullish on the Canadian economy — more so than on our neighbours’ economies? For lower foreign market exposure, stack shares in CIBC ahead of its Big Five peers. And while growth is not necessarily a facet of a bank stock, CIBC is nevertheless looking at 2.25% annual growth in earnings for the foreseeable future. A 48% total return by 2025 makes for a richly rewarding stock just right for a new income portfolio.

Lower international risk

CIBC is less exposed to uncertainty in the U.S. economy than heavily Americanized banks such as TD Bank. A CIBC stock investment likewise does not carry the type of geopolitical risk from instability in the Pacific Alliance bloc that an investment in Scotiabank adds to an income portfolio. Funded primarily by domestic customer deposits, CIBC has a low level of liability, making it suitable for low-risk investing.

Compared with CIBC, one of the top two bank’s in Canada, TD Bank, ticks a few of the same boxes: a 4% yield is a level of magnitude lower but still suitable for a long-range dividend portfolio, while projected total returns by 2025 could be as high as 70%. TD Bank stock is not as cheap as CIBC, however, with a P/B a little over the sector average, and its U.S. exposure may not sit well with investors that are bearish on our southern neighbours.

The bottom line

For investors bullish on the Canadian economy, and with little chance of an interest rate cut on the horizon, CIBC is a top stock to buy and forget. Its lower foreign exposure compared to its peers may mean a lower rate of growth, though this facet of its business lowers the potential for economic turbulence outside Canada. Investors looking for great value and a richer yield have a strong buy here.

Special ‘Tax Credit’ Stocks Revealed in FREE New Report

There’s nothing better to an income investor than the sight of dividends rolling into your account. But the old saying goes there are two things certain in life – death and taxes… and the latter can result in some of those precious dividends slipping through your fingers and into the taxman’s pocket!

But did you know that dividends from Canadian-based companies are eligible for special tax credits? For further details on this – and to find out the name of the single most tax-efficient account to hold your US stocks in! – simply click the link below to grab your free copy of our new report…

Claim your free report now!

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.