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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I invest in companies that have a track record of growing dividends. A chunk of my portfolio is invested in Canadian bank stocks which up to this year had a nice record of increasing dividends. In 2020 TD and RY did increase early in the year - but Covid brought a halt to increases from BMO and BNS. When do you think the banks will begin to think about increases - is 2021 too early and does OFSI (or whatever they are called) have a say and will they disallow.
Thanks
Read Answer Asked by Gary on November 26, 2020
Q: How would you rank the banks? Strongest to weakest in this environment.
I'm considering selling some far "out of the money" puts to get some income. And if I get assigned, so be it. I'll suffer with a few bank positions yielding close to 8%. Geez, we're talking about bank stocks! I figure if they get into trouble we're ALL in really really BIG trouble.
For example, TD at $40 would yield me 7.9% in dividends. That's like 10.2% in interest. Or RBC at $58 would yield me 7.4% in dividends.
So which Canadian banks would "crack" under pressure and which wouldn't.
Thanks and take care!
Read Answer Asked by Carlo on April 07, 2020
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