As promised here are the yields, payout ratios, current PE and forward PE for the big Canadian banks. Tomorrow I’ll do the same for the big US banks.
TD
Yield: 2.9%
Payout Ratio: 46%
PE: 15.7
Projected 2007 PE: 13.1
RY
Yield: 3.2%
Payout Ratio: 45%
PE: 14.1
Projected 2007 PE: 13.5
BNS
Yield: 3.4%
Payout Ratio: 46%
PE: 13.6
Projected 2007 PE: 13.2
CM
Yield: 3.1%
Payout Ratio: 36%
PE: 11.4
Projected 2007 PE: 12.3
BMO
Yield: 4%
Payout Ratio: 57%
PE: 14.4
Projected 2007 PE: 12.3
NA
Yield: 3.9%
Payout Ratio:43%
PE: 11.3
Projected 2007 PE:11.1
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6 comments:
A couple items that stand out:
BMO's pay out ratio is much higher than any other bank.
NA's growth looks anemic, which will probably push their yield and pay out ratio higher.
Great post. As a general note, banks' payout ratios are typically b/w 40-50% so BMO has no room to increase their dividend in the near future while CIBC may increase their dividend soon.
Banks often set goals for pay out ratios and they can change over time. I believe BMO has changed theirs recently.
It is very interesting when you compare the numbers in that fashion.
BMO has the highest yield and the second highest P/E. With having the higher yield, investors should bid up the price of the stock which will force the P/E even higher.
NA has almost the same yield as BMO and a much lower P/E.
Interesting.
Thanks for the stats summary!
I'm wondering how the Canadian Western Bank will fair in the years to come compared to the Big5?
I would also want to avoid any canadian banking stocks.
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