Another big year on tap for Canada's banks?


Capital returns are key, says a bullish Michael Goldberg from Desjardins Securities. He's looking for multiple expansions as dividend boosts and buybacks will have retail investors ditching fixed-income for bank stocks.

As for operations, Goldberg expects lending growth to Canada's already highly leveraged consumers could be a challenge. Instead banks will spend capital on acquisitions and the earlier-mentioned payouts and repurchases. His favorite picks are Scotiabank (BNS +0.1%) and TD Bank (TD +0.1%).

Others: BMO, RY, CM.

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Comments (3)
  • dunnhaupt
    , contributor
    Comments (2166) | Send Message
     
    Good idea, but both BNS and TD just went ex-div, and did NOT raise their dividend, nor did any of the other big Canadian banks.
    17 Jan 2014, 01:25 PM Reply Like
  • marpy
    , contributor
    Comments (1703) | Send Message
     
    Actually a number raised dividends the previous quarter and there is a good chance a number will raise them next quarter. Historically they have raised them every 6 months to a year in good times.
    17 Jan 2014, 03:32 PM Reply Like
  • afer
    , contributor
    Comments (223) | Send Message
     
    Canadian banks routinely raise their dividends, TD announced a stock split and raised their dividend in early December.
    17 Jan 2014, 01:49 PM Reply Like
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