For all the Canadian bank stock I follow, I have shown the link to my blog entries. The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For Bank of Montreal would be the symbol of “BMO.TO”.
For a dividend paying stock portfolio, you might want to buy safer Utilities and financial stocks first. See my site for information on setting up a portfolio. Also, Industrial stocks cover a wide field of endeavors. One definition is “in stock market vernacular, general, catch-all category including firms producing or distributing goods and services that are not classified as utility, consumer, or financial companies”.
Bank of Montreal (TSX-BMO, NYSE-BMO). The 5 year median dividend yield is 4.85%. This is the highest 5 year median yield of all the Canadian banks. This is the only one of the big 5 not to increased dividends this year. The DPRs, especially for Cash Flow are expected to be much more reasonable in 2012. Stock is selling at a relatively good price. For my blog entries dated December 2011, click here or here.
Royal Bank (TSX-RY, NYSE-RY). The 5 year median dividend yield is 3.92%. They restarted dividend increases in 2011 with an 8% increase. DPRs seem good. Stock price is relatively good also. For my blog entries dated December 2011, click here or here.
TD Bank (TSX-TD, NYSE-TD). The 5 year median dividend yield is 3.67%. They restarted dividend increases this year and did two increases. Total increase in Dividends for 2011 is 11.5%. DPRs are fine. Stock price is relatively low for this stock. For my blog entries dated December 2011, click here or here.
Bank of Nova Scotia (TSX-BNS, NYSE-BNS). The 5 year median dividend yield is 3.9%. They raised the dividends this year by 6.1%. DPRs are fine. Stock is also relatively cheap. For my blog entries dated December 2011, click here or here.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, December 29, 2011
Wednesday, December 28, 2011
Bank of Nova Scotia 2
I do not own this stock (TSX-BNS), but I have been following it for some time. This bank also only had dividends increases on hold for 2009 and 2010. They increased their dividends by 6.1% this year. This is one of the lowest increases for this bank that they have had for some time. The 5 and 10 year dividend growth is 6.45% and 12.7% per year, respectively.
As for all Canadian Banks, the insider trading report shows lots of insider selling. The gross insider selling is $28.9M and the net is $27.9M. Insider selling is by CEO, officers and directors. They seem mostly to be selling stock options. There is some insider buying by directors of just over $1M. There are 504 institutions that own some 65% of this stock. Over the past 3 months there has been buying and selling and they have increased their shares by a modest 1.3%.
I get a 5 year low median Price/Earnings Ratio of 11.4 and a high median P/E Ratios of 14.2. (Note that the 10 year median P/E ratios are virtually the same.) The current P/E Ratio of 10.78 is therefore a low one and that suggests a low stock price.
I get a Graham Price of 52.66. The current stock price of $50.97 is 3% lower. The 10 year median low difference between the Graham Price and Stock price is the stock price being the same. So the stock price being lower than the Graham Price suggests a low stock price also.
I get a 10 year median Price/Book Value Ratio of 2.40 and a current one of 1.96. The current one is 80% of the 10 year median and would suggest a low stock price also. The current dividend yield is 4.08% and the 5 year median dividend yield is 3.92%, some 4.2% lower. This also suggests a low stock price. (Note that the 10 year median high dividend yield at 3.71% is lower than the current yield also.)
When I look at analysts’ recommendations, I find them all. I find Strong Buy, Buy, Hold, Underperform and Sell recommendations. Most of the recommendations are either Buy or Hold. The consensus recommendation would be a Buy. With the Buy commendations come 12 months stock prices between $55 and $68, a rather big range. One Hold says that all Canadian Banks are fully valued.
I think that this is a good Canadian Bank. They also have exposure to the Caribbean and Central America which other Canadian Banks do not. The only reason I do not consider buying this stock is that I also have too much Canadian Bank stock.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
This is a pretty dull report. All our banks are priced relatively low. I cannot imagine a completely recovery until the EU solves their problems. No one knows when this will occur.
The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Bank of Nova Scotia. See my spreadsheet at bns.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
As for all Canadian Banks, the insider trading report shows lots of insider selling. The gross insider selling is $28.9M and the net is $27.9M. Insider selling is by CEO, officers and directors. They seem mostly to be selling stock options. There is some insider buying by directors of just over $1M. There are 504 institutions that own some 65% of this stock. Over the past 3 months there has been buying and selling and they have increased their shares by a modest 1.3%.
I get a 5 year low median Price/Earnings Ratio of 11.4 and a high median P/E Ratios of 14.2. (Note that the 10 year median P/E ratios are virtually the same.) The current P/E Ratio of 10.78 is therefore a low one and that suggests a low stock price.
I get a Graham Price of 52.66. The current stock price of $50.97 is 3% lower. The 10 year median low difference between the Graham Price and Stock price is the stock price being the same. So the stock price being lower than the Graham Price suggests a low stock price also.
I get a 10 year median Price/Book Value Ratio of 2.40 and a current one of 1.96. The current one is 80% of the 10 year median and would suggest a low stock price also. The current dividend yield is 4.08% and the 5 year median dividend yield is 3.92%, some 4.2% lower. This also suggests a low stock price. (Note that the 10 year median high dividend yield at 3.71% is lower than the current yield also.)
When I look at analysts’ recommendations, I find them all. I find Strong Buy, Buy, Hold, Underperform and Sell recommendations. Most of the recommendations are either Buy or Hold. The consensus recommendation would be a Buy. With the Buy commendations come 12 months stock prices between $55 and $68, a rather big range. One Hold says that all Canadian Banks are fully valued.
I think that this is a good Canadian Bank. They also have exposure to the Caribbean and Central America which other Canadian Banks do not. The only reason I do not consider buying this stock is that I also have too much Canadian Bank stock.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
This is a pretty dull report. All our banks are priced relatively low. I cannot imagine a completely recovery until the EU solves their problems. No one knows when this will occur.
The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Bank of Nova Scotia. See my spreadsheet at bns.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Saturday, December 24, 2011
Be back on December 28, 2011
This is just a note to say that my next post will be on Wednesday, December 28th, 2011.
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. See my website for stocks followed and investment notes. Follow me on twitter.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, December 23, 2011
Bank of Nova Scotia
I do not own this stock (TSX-BNS), but I have been following it for some time. This bank also only had dividends increases on hold for 2009 and 2010. They increased their dividends by 6.1% this year. This is one of the lowest increases for this bank that they have had for some time. The 5 and 10 year dividend growth is 6.45% and 12.7% per year, respectively.
As far as Dividend Payout Ratios goes, their 5 year median DPRs are 50% for earnings and 35% for Cash Flow. Their 10 year median DPRs are lower at 44% and 36%. Their DPRs for 2011 were 44% and 35% and therefore closer to the 10 year median. Their DPRs peaked in 2008 and have been coming down since. (See my site for information on Dividend Payout Ratios).
If you had held this stock over the past 5 and 10 years, you would have had a total return of 4.7% and 13.5% per year. Dividend portion of this return would have been 3.7% and 4.4%. The portion of this return attributable to dividends would be 80% and 32% respectively.
Revenues have been growing over the past 5 and 10 years at around 1.6%. This is low, but revenue growth for all Canadian banks has been low. Earnings have been growing over the past 5 and 10 years at 5.4% and 8.6% per year, respectively.
Cash Flow has been growing at 10.8% and 5.9% per year over the past 5 and 10 years. Book Value has been growing at 8.8% and 7.4%. Concerning the trouble this last recession has caused our banks, this is not bad.
The Return on Equity has always been good for this bank. The ROE for 2011 was 17.5% and the 5 year median was 17.1%. The ROE based on Comprehensive Income is a bit lower, but not significantly lower. The ROE for Comprehensive Income for 2011 was 16.2. However the 5 year median ROE based on Comprehensive Income is lower at 13.6. All these ROE are in the desirable 10 to 15% range.
The Asset/Liability Ratio is low at 1.06, but within typical range for a bank. The Leverage and Debt/Equity Ratios are a bit high at 20.27 and 19.10, but lower than the 10 year medians of 22.11 and 20.89. They are also pretty typical for a bank.
The basic reason I do not own this bank is that I have enough bank stock. I think it is better to own some, but not all, our banks. You can over diversify
I have made transfers from my RRSP accounts for this year. I therefore had a bit of money to invest and so bought some more shares in Ag Growth International (TSX-AFN) today. This is a stock I already own.
The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Bank of Nova Scotia. See my spreadsheet at bns.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
As far as Dividend Payout Ratios goes, their 5 year median DPRs are 50% for earnings and 35% for Cash Flow. Their 10 year median DPRs are lower at 44% and 36%. Their DPRs for 2011 were 44% and 35% and therefore closer to the 10 year median. Their DPRs peaked in 2008 and have been coming down since. (See my site for information on Dividend Payout Ratios).
If you had held this stock over the past 5 and 10 years, you would have had a total return of 4.7% and 13.5% per year. Dividend portion of this return would have been 3.7% and 4.4%. The portion of this return attributable to dividends would be 80% and 32% respectively.
Revenues have been growing over the past 5 and 10 years at around 1.6%. This is low, but revenue growth for all Canadian banks has been low. Earnings have been growing over the past 5 and 10 years at 5.4% and 8.6% per year, respectively.
Cash Flow has been growing at 10.8% and 5.9% per year over the past 5 and 10 years. Book Value has been growing at 8.8% and 7.4%. Concerning the trouble this last recession has caused our banks, this is not bad.
The Return on Equity has always been good for this bank. The ROE for 2011 was 17.5% and the 5 year median was 17.1%. The ROE based on Comprehensive Income is a bit lower, but not significantly lower. The ROE for Comprehensive Income for 2011 was 16.2. However the 5 year median ROE based on Comprehensive Income is lower at 13.6. All these ROE are in the desirable 10 to 15% range.
The Asset/Liability Ratio is low at 1.06, but within typical range for a bank. The Leverage and Debt/Equity Ratios are a bit high at 20.27 and 19.10, but lower than the 10 year medians of 22.11 and 20.89. They are also pretty typical for a bank.
The basic reason I do not own this bank is that I have enough bank stock. I think it is better to own some, but not all, our banks. You can over diversify
I have made transfers from my RRSP accounts for this year. I therefore had a bit of money to invest and so bought some more shares in Ag Growth International (TSX-AFN) today. This is a stock I already own.
The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Bank of Nova Scotia. See my spreadsheet at bns.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, December 22, 2011
TD Bank 2
I own this stock of Toronto-Dominion Bank (TSX-TD, NYSE-TD). This is the most recent bank for me to buy. I bought some for my Locked-in RRSP in 2000 and then sold some of this in May 2009 (at a profit). I also bought some for my RRSP account in June 2009. I have made a return of 13.4% total return on this stock. Of this total return some 3.3% is dividend return. My dividends comprise 24% of my total return.
When I look at insider trading, I find a net of insider selling for $30.7M and insider selling at $32.2M. All the insider selling is by officers of the company. It would seem that officers of TD are not retaining their options. The bit of insider buying of $1.4M is all by directors of the company. Some 596 institutions own 69% of this company. Over the past 3 months there has been buying and selling and institutions have marginally increased, by 1.3%. their holdings in this stock.
The 5 year median low Price/Earnings Ratio is 11.00 and the 5 year median high P/E Ratios is 15.09. The current stock price of $73.40 has a P/E ratio of 10.40, which is on the relatively low side. I get a Graham Price of $73.40. The current stock price is some 16% lower. The low difference between the Graham Price and stock price is the stock price being 4% lower. By this measure also, the stock price is low.
I get a 10 year median Price/Book Value Ratio of 1.98. The current P/B Ratio of 1.52 is 77% lower. This also shows a low stock price. The current dividend yield of 3.71% is higher than the 5 year median dividend yield of 3.67%. The higher current dividend yield shows a relatively good stock price.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Sell. The consensus recommendation would be a Buy. One Hold recommendation was worried about Canadian Bank stock volatility over the short term. Another one mentioned worries about the European situation. One Buy mentioned that TD raised their dividends twice this year. Another said he like the current dividend yield.
One Buy recommendation came with a 12 months stock price of $80. Another Buy recommendation has a 12 months stock price of $87. A couple of Buy recommendations mentioned the acquisition of Chrysler Financial Corp. They thought this was an excellent buy for TD Bank.
As I said yesterday, I currently plan to hold on to my shares in this bank. However, once Canadian Banks fully recover from the latest recession, I may have too much in this sector and may have to sell some bank stocks. At that time I will decide what to sell. I will probably do the selling from my RRSP accounts, so this probably means I will sell TD or Royal Bank.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
The TD is a bank with full range of financial products and services for individuals and corporations in Canada, USA and internationally. Financial products and services include Canadian Personal and Commercial Banking; Wealth Management; U.S. Personal and Commercial Banking; and Wholesale banking products. Its web site is here TD Bank. See my spreadsheet at td.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at insider trading, I find a net of insider selling for $30.7M and insider selling at $32.2M. All the insider selling is by officers of the company. It would seem that officers of TD are not retaining their options. The bit of insider buying of $1.4M is all by directors of the company. Some 596 institutions own 69% of this company. Over the past 3 months there has been buying and selling and institutions have marginally increased, by 1.3%. their holdings in this stock.
The 5 year median low Price/Earnings Ratio is 11.00 and the 5 year median high P/E Ratios is 15.09. The current stock price of $73.40 has a P/E ratio of 10.40, which is on the relatively low side. I get a Graham Price of $73.40. The current stock price is some 16% lower. The low difference between the Graham Price and stock price is the stock price being 4% lower. By this measure also, the stock price is low.
I get a 10 year median Price/Book Value Ratio of 1.98. The current P/B Ratio of 1.52 is 77% lower. This also shows a low stock price. The current dividend yield of 3.71% is higher than the 5 year median dividend yield of 3.67%. The higher current dividend yield shows a relatively good stock price.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Sell. The consensus recommendation would be a Buy. One Hold recommendation was worried about Canadian Bank stock volatility over the short term. Another one mentioned worries about the European situation. One Buy mentioned that TD raised their dividends twice this year. Another said he like the current dividend yield.
One Buy recommendation came with a 12 months stock price of $80. Another Buy recommendation has a 12 months stock price of $87. A couple of Buy recommendations mentioned the acquisition of Chrysler Financial Corp. They thought this was an excellent buy for TD Bank.
As I said yesterday, I currently plan to hold on to my shares in this bank. However, once Canadian Banks fully recover from the latest recession, I may have too much in this sector and may have to sell some bank stocks. At that time I will decide what to sell. I will probably do the selling from my RRSP accounts, so this probably means I will sell TD or Royal Bank.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
The TD is a bank with full range of financial products and services for individuals and corporations in Canada, USA and internationally. Financial products and services include Canadian Personal and Commercial Banking; Wealth Management; U.S. Personal and Commercial Banking; and Wholesale banking products. Its web site is here TD Bank. See my spreadsheet at td.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, December 21, 2011
TD Bank
I own this stock (TSX-TD, NYSE-TD). This is the most recent bank for me to buy. I bought some for my Locked-in RRSP in 2000 and then sold some of this in May 2009 (at a profit). I also bought some for my RRSP account in June 2009. I have made a return of 13.4% total return on this stock. Of this total return some 3.3% is dividend return. My dividends comprise 24% of my total return.
I have not done as well on this bank stock as on BMO and Royal because I have not had it as long. Also, I have done much better in the RRSP account with a total return of 23%. For my Locked-in RRSP my return is only 9.2%. The 2008 bear market has hit our banks hard and they have yet to fully recover. I will probably sell some bank stock when they do as I will have too much of my portfolio in bank stocks when they fully recover.
For TD Bank, the dividends were just not increased in 2009 and 2010. They were increased in 2011 twice. The first increase was for 8.2% and the second one for 3% with total increase at 11.5% for the year. The growth in dividends over the past 5 and 10 years is 8% and 9%. The 5 year median Dividend Payout Ratios are 49% for earnings and 31% for CF. They were lower in 2011 and are expected to be lower again in 2012.
Total return over the past 5 and 10 years on this stock is 6.4% and 11.3% per year respectively. The portion attributable to dividends is 3.5% and 3.6%. The portion of the total return attributable to dividends over the past 5 and 10 years is 54% and 32%, respectively.
The best growth rates for this stock is in book value, which over the past 5 and 10 years has grown at 12.5% and 9.8% per year, respectively. The worse is probably revenue, which has not grown over the past 5 and 10 years. Earnings have grown 0% over the past 5 years, and 12.1% per year, over the past 10 years. Cash Flow has grown at 8.7% and 3.4% per year over the past 5 and 10 years.
Return on Equity has still been good over the past few years. The ROE at the end of 2011 was 13.1%. The 5 year median ROE was 12.7%. Both ROEs are quite good. The ROE using Comprehensive Income is a bit lower at 12.5 at the end of 2011 and this has a 5 year median of 12.9%. This is also in the good range of 10% to 15%.
The Asset/Liability Ratio at 1.07 is typical for a bank. The Leverage and Debt/Equity Ratios at 15.79 and 14.72 are better than the other banks and better than the 10 year median ratios of 20.29 and 19.27.
I am pleased with my investment in TD bank and will hold on to it for now. However, I expect that when the banks fully recover I might want to sell some bank stock. However, stocks in the financial service industry make up just 24% of my portfolio. Its portion would have to be over 30% before I would consider selling any. My insurance company investment would also have to recover.
The TD is a bank with full range of financial products and services for individuals and corporations in Canada, USA and internationally. Financial products and services include Canadian Personal and Commercial Banking; Wealth Management; U.S. Personal and Commercial Banking; and Wholesale banking products. Its web site is here TD Bank. See my spreadsheet at td.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
I have not done as well on this bank stock as on BMO and Royal because I have not had it as long. Also, I have done much better in the RRSP account with a total return of 23%. For my Locked-in RRSP my return is only 9.2%. The 2008 bear market has hit our banks hard and they have yet to fully recover. I will probably sell some bank stock when they do as I will have too much of my portfolio in bank stocks when they fully recover.
For TD Bank, the dividends were just not increased in 2009 and 2010. They were increased in 2011 twice. The first increase was for 8.2% and the second one for 3% with total increase at 11.5% for the year. The growth in dividends over the past 5 and 10 years is 8% and 9%. The 5 year median Dividend Payout Ratios are 49% for earnings and 31% for CF. They were lower in 2011 and are expected to be lower again in 2012.
Total return over the past 5 and 10 years on this stock is 6.4% and 11.3% per year respectively. The portion attributable to dividends is 3.5% and 3.6%. The portion of the total return attributable to dividends over the past 5 and 10 years is 54% and 32%, respectively.
The best growth rates for this stock is in book value, which over the past 5 and 10 years has grown at 12.5% and 9.8% per year, respectively. The worse is probably revenue, which has not grown over the past 5 and 10 years. Earnings have grown 0% over the past 5 years, and 12.1% per year, over the past 10 years. Cash Flow has grown at 8.7% and 3.4% per year over the past 5 and 10 years.
Return on Equity has still been good over the past few years. The ROE at the end of 2011 was 13.1%. The 5 year median ROE was 12.7%. Both ROEs are quite good. The ROE using Comprehensive Income is a bit lower at 12.5 at the end of 2011 and this has a 5 year median of 12.9%. This is also in the good range of 10% to 15%.
The Asset/Liability Ratio at 1.07 is typical for a bank. The Leverage and Debt/Equity Ratios at 15.79 and 14.72 are better than the other banks and better than the 10 year median ratios of 20.29 and 19.27.
I am pleased with my investment in TD bank and will hold on to it for now. However, I expect that when the banks fully recover I might want to sell some bank stock. However, stocks in the financial service industry make up just 24% of my portfolio. Its portion would have to be over 30% before I would consider selling any. My insurance company investment would also have to recover.
The TD is a bank with full range of financial products and services for individuals and corporations in Canada, USA and internationally. Financial products and services include Canadian Personal and Commercial Banking; Wealth Management; U.S. Personal and Commercial Banking; and Wholesale banking products. Its web site is here TD Bank. See my spreadsheet at td.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, December 20, 2011
Royal Bank 2
I own this stock (TSX-RY, NYSE-RY). I bought this bank in October 1995. To date, I have made a return of 17.9% per year. Of this total return 5.56% per year is attributed to dividends. So some 31% of my return is accounted for by dividends. On my original investment, I am making a return of 29.75%.
I think that it is important to know how much return is from dividend income. This is an important part of my total return. Without the dividends, my returns would be substantially lower. For this stock 31% of my return is in Dividend income. For Bank of Montreal, it was 44%.
The insider selling at Royal Bank is not quite as bad as at BMO, but almost. Here there is some insider selling of $19.8M and net insider selling at $19.2M. There is modest insider buying by directors. The CEO has insider selling of $13.4M. There is also insider selling by the CFO, officers and directors. It would seem that they are not keeping stock options. CEO, CFO and officers all have lots more stock options than shares.
There are some 524 institutions that hold 54% of the shares of this bank. There has been buying and selling by these institutions over the past 3 months with them marginally (i.e. less than 1%) increasing their holdings.
The 5 year median low Price/Earnings Ratios is 11.68 and the 5 year median high ratio is 18.04. The current one of 10.5 would therefore show a rather low relative stock price. It is also a rather low absolute stock price. I get a Graham price of $51.58. This is 5.7% higher than the current stock price of $48.62. The 10 year low difference between the Graham Price and the stock price is the stock price being some 4% higher. By this measure, the stock price is also relatively low.
I get a 10 year median Price/Book Value Ratio of 2.34 and a current P/B Ratio of 1.90 which is 81% of the median P/B ratio. By this measure the stock price is also relatively low. I get a 5 year median dividend yield of 3.92% and a current yield of 4.44%. This shows a relatively low current stock price. So does the 10 year median high dividend yield, which is just 3.65%.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. By and large, the biggest number of recommendations is Hold. The consensus recommendation would be a Hold. Analysts with Buy recommendations talk about its cheap price. Those with Hold recommendations talk that this and other Canadian Banks, are relatively high compared to worldwide banks. They think that Canadian banks stock prices will not improve in the near future.
I, of course, will hold on to the shares I own. I own too much in Canadian banks to buy anymore at this time.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
Royal Bank of Canada and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here Royal Bank. See my spreadsheet at ry.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
I think that it is important to know how much return is from dividend income. This is an important part of my total return. Without the dividends, my returns would be substantially lower. For this stock 31% of my return is in Dividend income. For Bank of Montreal, it was 44%.
The insider selling at Royal Bank is not quite as bad as at BMO, but almost. Here there is some insider selling of $19.8M and net insider selling at $19.2M. There is modest insider buying by directors. The CEO has insider selling of $13.4M. There is also insider selling by the CFO, officers and directors. It would seem that they are not keeping stock options. CEO, CFO and officers all have lots more stock options than shares.
There are some 524 institutions that hold 54% of the shares of this bank. There has been buying and selling by these institutions over the past 3 months with them marginally (i.e. less than 1%) increasing their holdings.
The 5 year median low Price/Earnings Ratios is 11.68 and the 5 year median high ratio is 18.04. The current one of 10.5 would therefore show a rather low relative stock price. It is also a rather low absolute stock price. I get a Graham price of $51.58. This is 5.7% higher than the current stock price of $48.62. The 10 year low difference between the Graham Price and the stock price is the stock price being some 4% higher. By this measure, the stock price is also relatively low.
I get a 10 year median Price/Book Value Ratio of 2.34 and a current P/B Ratio of 1.90 which is 81% of the median P/B ratio. By this measure the stock price is also relatively low. I get a 5 year median dividend yield of 3.92% and a current yield of 4.44%. This shows a relatively low current stock price. So does the 10 year median high dividend yield, which is just 3.65%.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. By and large, the biggest number of recommendations is Hold. The consensus recommendation would be a Hold. Analysts with Buy recommendations talk about its cheap price. Those with Hold recommendations talk that this and other Canadian Banks, are relatively high compared to worldwide banks. They think that Canadian banks stock prices will not improve in the near future.
I, of course, will hold on to the shares I own. I own too much in Canadian banks to buy anymore at this time.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin.
Royal Bank of Canada and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here Royal Bank. See my spreadsheet at ry.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, December 19, 2011
Royal Bank
First, I want to say I was wrong about one thing on the Bank of Montreal. That was what return my stock was earning after 29 years. On Thursday I had said that on my original stock price, I am making a 19.3% return on Dividends. I had forgotten the split in stock in 2001, so what I am making on my original stock price is a 39% return on dividends.
My return per year at 16% per year was correct as I have used Quicken to determine this and Quicken took the split into account. I had originally bought this stock in 1983 and then using my dividends and extra money in the stock reinvestment plan (DRIP) added to my shares until August 1987. My purchase price is what I paid from 1983 to 1987 divided by the number of shares at that time and then the 2001 split.
Next, on to the Royal Bank (TSX-RY, NYSE-RY), a stock I also own and the one I want to talk about today. I bought this bank in October 1995. To date, I have made a return of 17.9% per year. Of this total return 5.56% is attributed to dividends. So some 31% of my return is accounted for by dividends. On my original investment, I am making a return of 29.75%.
Over the past 5 and 10 years, the returns have not been as good. The 5 and 10 year total returns on this stock are 3.2% and 11.9% per year. Of this return around 4% is attributed to dividends. Do not forget that banks have been hit hard by the latest bear market and dividend increases have been below the normal. I expect that our Canadian banks will recover, but it may take some time.
The best growth rates for this stock are dividends. Over the past 5 and 10 years dividends have grown at the rate of 8.9% and 11.7% per year, respectively. Dividends were not increased between 2008 and 2010. When they were finally increased in2011, the increase was for 8%. The 5 year median Dividend Payout Ratios for earnings and cash flow were 60% and 25%. They were bit higher in 2011 and are expected to be a bit lower in 2012 than the 5 year median ratios.
The next best growth rates are for Book Value, which over the past 5 and 10 years has grown by 9.3% and 7.9% per year respectively. Revenues have only grown at 3.4% and 4.8% per year over past 5 and 10 years. Cash flow has only grown at 0% and 4.8% per year over the past 5 and 10 years. Earnings have gone down by 2% per year over the past 5 years and have grown at the rate of 6% per year over the past 10 years.
Return on Equity has always been quite good. The ROE for the financial year ending in October 2011 was 13.2%. The 5 year median ROE is better at 15.3%.
I do not look at the Liquidity Ratio for banks as it does not really apply. The Asset/Liability Ratio is low at 1.06, but this is typical for a bank. The Leverage and Debt/Equity Ratios might appear high at 20.37 and 19.24, but these are also typical for a bank. They are also better than the 10 year medians of 24.48 and 23.44, respectively.
I have done very well with this stock over the long term and expect that this will continue. Over the short term, this bank, as all our banks, is not growing much. However, it was a good indicator that this bank restarted dividend increases in 2011.
Royal Bank of Canada and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here Royal Bank. See my spreadsheet at ry.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
My return per year at 16% per year was correct as I have used Quicken to determine this and Quicken took the split into account. I had originally bought this stock in 1983 and then using my dividends and extra money in the stock reinvestment plan (DRIP) added to my shares until August 1987. My purchase price is what I paid from 1983 to 1987 divided by the number of shares at that time and then the 2001 split.
Next, on to the Royal Bank (TSX-RY, NYSE-RY), a stock I also own and the one I want to talk about today. I bought this bank in October 1995. To date, I have made a return of 17.9% per year. Of this total return 5.56% is attributed to dividends. So some 31% of my return is accounted for by dividends. On my original investment, I am making a return of 29.75%.
Over the past 5 and 10 years, the returns have not been as good. The 5 and 10 year total returns on this stock are 3.2% and 11.9% per year. Of this return around 4% is attributed to dividends. Do not forget that banks have been hit hard by the latest bear market and dividend increases have been below the normal. I expect that our Canadian banks will recover, but it may take some time.
The best growth rates for this stock are dividends. Over the past 5 and 10 years dividends have grown at the rate of 8.9% and 11.7% per year, respectively. Dividends were not increased between 2008 and 2010. When they were finally increased in2011, the increase was for 8%. The 5 year median Dividend Payout Ratios for earnings and cash flow were 60% and 25%. They were bit higher in 2011 and are expected to be a bit lower in 2012 than the 5 year median ratios.
The next best growth rates are for Book Value, which over the past 5 and 10 years has grown by 9.3% and 7.9% per year respectively. Revenues have only grown at 3.4% and 4.8% per year over past 5 and 10 years. Cash flow has only grown at 0% and 4.8% per year over the past 5 and 10 years. Earnings have gone down by 2% per year over the past 5 years and have grown at the rate of 6% per year over the past 10 years.
Return on Equity has always been quite good. The ROE for the financial year ending in October 2011 was 13.2%. The 5 year median ROE is better at 15.3%.
I do not look at the Liquidity Ratio for banks as it does not really apply. The Asset/Liability Ratio is low at 1.06, but this is typical for a bank. The Leverage and Debt/Equity Ratios might appear high at 20.37 and 19.24, but these are also typical for a bank. They are also better than the 10 year medians of 24.48 and 23.44, respectively.
I have done very well with this stock over the long term and expect that this will continue. Over the short term, this bank, as all our banks, is not growing much. However, it was a good indicator that this bank restarted dividend increases in 2011.
Royal Bank of Canada and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here Royal Bank. See my spreadsheet at ry.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, December 16, 2011
Bank of Montreal 2
I own this stock (TSX-BMO). This was the first bank stock that I bought. I bought it back in 1983. I have only been tracking it on Quicken since 1987. Since I have been tracking it, I have made a total return of 16% per year. Of this return, my dividends payments were 7.5% per year.
When I look at insider trading, I find no insider buying and lots of lots of insider selling. The CFO has sold $19M and then there is $21M by officers, for a grand total of $40M of insider selling. It would seem that insiders are not keeping their stock options. Some 504 institutions own around 57% of the shares of BMO. There has been buying and selling by institutions over the past 3 months. They have increased their shares in this company by 8.4% over the past 3 months.
I get 5 year median low Price/Earnings Ratio of 10.52 and 5 year median high P/E Ratio of 16.87. I get a current P/E Ratio of 10 on a stock price of $56.66. By this measure the current stock price is low. It looks even better over a longer period as the 10 year low P/E Ratio is 11.06.
I get a current Graham Price of $70.89. The current stock price of $56.66 is 25% lower. The 10 year low difference between the Graham Price and stock price is the stock price being 9.6% lower. By this measure the stock price is low.
I get a 10 year Price/Book Value Ratio of 1.75. The current P/B Ratio is 1.43, which is 73% low the than 10 year median P/B Ratio and shows a low current stock price. The last stock price tests is for Dividend yield. I get a current yield of 4.94% and a 5 year median dividend yield of 4.85%. This shows a low stock price. Also, the 10 year median high yield is 4.23%, even lower than the 5 year median.
So, by all my tests the current stock price is low. Of course, you have to be careful when stock prices are low. They can be low for a reason. When looking at analysts’ recommendations, I find them all over the place with recommendations of Strong Buy, Buy, Hold, Underperform and Sell. The consensus recommendation would be a hold.
Analysts feel that the dividend is safe. This is the only bank not to raise their dividend after the most recent crisis of 2008. One analyst expects this to change within 6 to 9 months. I do not think that anyone expects BMO to do well in the near term, but they do expect it to do better in the long term.
Well, we know what Desjardins thinks of BMO. See G&M article called Desjardins downgrades Bank of Montreal.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin. This bank, along with Royal Bank is cutting jobs, but both are cutting less than 1% of workforce. See the Financial Post.
Analysts that feel it is a buy feel the dividend is safe and BMO is a buy for the long term. Analysts that say it is not a buy feel that it could go lower and there is too much risk in buying this stock, especially in the short term. Personally, I will not be selling my stock in this company. I feel that it will come back and provide reasonable future returns.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here Canada Bread. See my spreadsheet at bmo.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at insider trading, I find no insider buying and lots of lots of insider selling. The CFO has sold $19M and then there is $21M by officers, for a grand total of $40M of insider selling. It would seem that insiders are not keeping their stock options. Some 504 institutions own around 57% of the shares of BMO. There has been buying and selling by institutions over the past 3 months. They have increased their shares in this company by 8.4% over the past 3 months.
I get 5 year median low Price/Earnings Ratio of 10.52 and 5 year median high P/E Ratio of 16.87. I get a current P/E Ratio of 10 on a stock price of $56.66. By this measure the current stock price is low. It looks even better over a longer period as the 10 year low P/E Ratio is 11.06.
I get a current Graham Price of $70.89. The current stock price of $56.66 is 25% lower. The 10 year low difference between the Graham Price and stock price is the stock price being 9.6% lower. By this measure the stock price is low.
I get a 10 year Price/Book Value Ratio of 1.75. The current P/B Ratio is 1.43, which is 73% low the than 10 year median P/B Ratio and shows a low current stock price. The last stock price tests is for Dividend yield. I get a current yield of 4.94% and a 5 year median dividend yield of 4.85%. This shows a low stock price. Also, the 10 year median high yield is 4.23%, even lower than the 5 year median.
So, by all my tests the current stock price is low. Of course, you have to be careful when stock prices are low. They can be low for a reason. When looking at analysts’ recommendations, I find them all over the place with recommendations of Strong Buy, Buy, Hold, Underperform and Sell. The consensus recommendation would be a hold.
Analysts feel that the dividend is safe. This is the only bank not to raise their dividend after the most recent crisis of 2008. One analyst expects this to change within 6 to 9 months. I do not think that anyone expects BMO to do well in the near term, but they do expect it to do better in the long term.
Well, we know what Desjardins thinks of BMO. See G&M article called Desjardins downgrades Bank of Montreal.
The blogger addicted2dividend has blogged about this stock recently at The Loonie Bin. This bank, along with Royal Bank is cutting jobs, but both are cutting less than 1% of workforce. See the Financial Post.
Analysts that feel it is a buy feel the dividend is safe and BMO is a buy for the long term. Analysts that say it is not a buy feel that it could go lower and there is too much risk in buying this stock, especially in the short term. Personally, I will not be selling my stock in this company. I feel that it will come back and provide reasonable future returns.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here Canada Bread. See my spreadsheet at bmo.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, December 15, 2011
Bank of Montreal
I own this stock (TSX-BMO). This was the first bank stock that I bought. I bought it back in 1983. I have only been tracking it on Quicken since 1987. Since I have been tracking it, I have made a total return of 16% per year. Of this return, my dividends payments were 7.5% per year. On my original stock price, I am making a 19.3% return on Dividends.
The Bank of Montreal has not raised their dividends since 2008. They seem to be the last of the banks to delay dividend increases. I see no news on when they might raise the dividends. They used to have a very good record of dividend increases. The 10 year growth in dividends is still not bad, but the 5 year one is low because of no recent dividend increases. The 5 and 10 year growth in dividends is 4.4% and 9.6% per year, respectively.
The Dividend Payout Ratio for earnings in 2011 was 53%. However, traditionally the DPR for earnings has been in the 30% and 40% range. Since the DPR for earnings is expected to be around 37% next year, maybe there is hope for a dividend raise soon. On the other hand, the problems in Europe are bound to affect us, so maybe not.
Over the past 5 years there has been minimal growth in both revenues and earnings. The 5 year growth for both these items is around 1% per year. The 10 year growth in earnings at around 7% per year is in the ok range. However, the 10 year growth in revenue is also in the 1% per year range and therefore a very low range.
There has not been much increase in cash flow for this bank either. However, cash flow for banks tends to be all over the place and it often hard to tell if there is any cash flow growth. The 5 and 10 year growth in book value is ok, but a bit low at 6% and 7% per year, over the past 5 and 10 years.
The Return on Equity is good for 2011 at 13%. The 5 year median ROE is also 13%. The ROE has always been quite good for BMO.
The last thing to talk about is the debt ratios. The Liquidity Ratio is meaningless for banks, so I do not track this. The Asset/Liability Ratio for BMO is low at 1.06, but this is in the normal range for banks. The Leverage and Debt/Equity Ratios might seem high at 18.9 and 17.79, but these are rather normal for banks. All these ratios are lower than the 5 year median ratios. The 5 year median Ratio for the A/L Ratio is 1.05. The 5 year median Leverage and Debt/Equity Ratios were at 22.27 and 21.23.
This bank does not seem to be doing as good as other banks are currently. If I were buying a bank today, I probably would not buy this one. I would probably go for Bank of Nova Scotia instead. I also own Royal Bank and TD bank.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here Canada Bread. See my spreadsheet at bmo.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
The Bank of Montreal has not raised their dividends since 2008. They seem to be the last of the banks to delay dividend increases. I see no news on when they might raise the dividends. They used to have a very good record of dividend increases. The 10 year growth in dividends is still not bad, but the 5 year one is low because of no recent dividend increases. The 5 and 10 year growth in dividends is 4.4% and 9.6% per year, respectively.
The Dividend Payout Ratio for earnings in 2011 was 53%. However, traditionally the DPR for earnings has been in the 30% and 40% range. Since the DPR for earnings is expected to be around 37% next year, maybe there is hope for a dividend raise soon. On the other hand, the problems in Europe are bound to affect us, so maybe not.
Over the past 5 years there has been minimal growth in both revenues and earnings. The 5 year growth for both these items is around 1% per year. The 10 year growth in earnings at around 7% per year is in the ok range. However, the 10 year growth in revenue is also in the 1% per year range and therefore a very low range.
There has not been much increase in cash flow for this bank either. However, cash flow for banks tends to be all over the place and it often hard to tell if there is any cash flow growth. The 5 and 10 year growth in book value is ok, but a bit low at 6% and 7% per year, over the past 5 and 10 years.
The Return on Equity is good for 2011 at 13%. The 5 year median ROE is also 13%. The ROE has always been quite good for BMO.
The last thing to talk about is the debt ratios. The Liquidity Ratio is meaningless for banks, so I do not track this. The Asset/Liability Ratio for BMO is low at 1.06, but this is in the normal range for banks. The Leverage and Debt/Equity Ratios might seem high at 18.9 and 17.79, but these are rather normal for banks. All these ratios are lower than the 5 year median ratios. The 5 year median Ratio for the A/L Ratio is 1.05. The 5 year median Leverage and Debt/Equity Ratios were at 22.27 and 21.23.
This bank does not seem to be doing as good as other banks are currently. If I were buying a bank today, I probably would not buy this one. I would probably go for Bank of Nova Scotia instead. I also own Royal Bank and TD bank.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here Canada Bread. See my spreadsheet at bmo.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
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