Canadian Imperial Bank of Commerce

First I would like to say that the transfer of money to my Meridian Account was showing up on Friday, January 19 first thing in the morning and was dated January 18. This is effectively 4 business days before money can actually be used. So I did transfer on Monday and can use the money on Friday. If this was Tangerine, the transaction would be done the following day that is I could use the money on Tuesday.

Sound bite for Twitter and StockTwits is: Dividend Growth Bank. The stock price seems fairly good with a number of good tests show it reasonable and around the median. Here again a bank with some very good long term returns. See my spreadsheet on Canadian Imperial Bank of Commerce.

I do not own this stock of Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM). This was the only major Canadian Bank I was not following. I think it is about time I did.

The dividends are good and the dividend increases are low to moderate. The current dividend is 4.23%, with the 5, 10 and historical median yields at 4.67%, 4.80% and 4.29%. I consider any yield in the 4 or 5% range as good. The growth in dividends over the past 5, 10, 15, 20, 25 and 30 years are 6.89%, 5.03%, 8.01%, 8.20%, 8.51% and 7.56%. I consider growth less than 8% to be low and 8% to 15% to be moderate.

They can afford their dividends. The Dividend Payout Ratio for 2017 is 45.2% with 5 year coverage at 46.6%. For banks the DPR is expected to be in the 40% to 55% range.

The long term total returns are also good for this bank. I have them for up to 30 years. The 5, 10, 15, 20, 25 and 30 year total returns are 13.49%, 10.03%, 12.15%, 8.82%, 14.64% and 12.50%. The total return includes both dividends and capital gain and values are for December to December. The growth rates are compounded rates

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.00, 9.89 and 10.78. The 10 year ratios are 9.14, 10.19 and 11.24. The historical ratios are 8.34, 9.73 and 11.40. The current P/E Ratio is 11.18 based on a stock price of $122.95 and 2018 EPS estimate of $11.00. This stock price testing suggests that the stock price is relatively reasonable but above the median and close to being expensive.

I get a Graham Price of $128.34. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 0.97 and 1.08. The current P/GP Ratio is 0.96 based on a stock price of $122.95. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year Price/Book Value per Share Ratio is 1.96. The current P/B Ratio is 1.85 based on Book Value of $29,238M, Book Value per Share of $66.55 and a stock price of $122.95. The current ratio is some 5.9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The historical median dividend yield is $4.29%. The current dividend yield is 4.23% based on dividends of $5.20 and a stock price of $122.95. The current dividend yield is some 1.4% below the historical median. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year median Price/Sales (Revenue) Ratio is 2.52. The current P/S Ratio is 3.06 based on 2018 Revenue estimate of $17,641M, Revenue per Share of $40.16 and a stock price of 122.95. The current ratio is some 21.3% higher than the 10 year median ratio. This stock price testing suggests that the stock price is expensive.

When I look at analysts' recommendations I find Strong Buy (2), Buy (6), Hold (4) and Underperform (3). The consensus would be a Buy recommendation. The 12 month stock price consensus is $128.47. This implies a total return of 8.72% with 4.49% from capital gains and 4.23% from dividends.

Eric Emin Wood on IT World Canada talks about this bank going tech. They also have just purchased Toronto-based Wellington Financial. Andrew Walker on Motley Fool says what he likes about this bank. The Motley Fool David Jagielski of The Motley Fool on Yahoo talks about CIBC might be the best Canadian bank to buy. The Dividend Earner blogger talks about CIBC. See what analysts are saying about this bank on Stock Chase. They think it is doing well.

Canadian Imperial Bank of Commerce is a Canadian-based financial institution. The company serves its clients through retail and business banking, wealth management and wholesale banking. Its web site is here Canadian Imperial Bank of Commerce.

The last stock I wrote about was about was National Bank of Canada (TSX-NA, OTC-NTIOF)... learn more. The next stock I will write about will be Transcontinental Inc. (TSX-TCL, OTC-TCLAF)... learn more on Monday, January 22, 2018 around 5 pm.

Also, on my book blog I have put a review of the book Why Zebras Don't Get Ulcers by Robert Sapolsky learn more...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.