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3 High-Yield Bank Stocks to Buy Right Now

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Bank stocks might not attract you, but their high yields can. While I admit that low interest rates and high provisions aren’t a friendly environment for banks to operate, it doesn’t indicate that bank stocks are not worth investing in.

The large Canadian banks are well capitalized and could easily navigate the current crisis. Moreover, they offer lucrative yields that are safe and sustainable in the long run. So, if you’re looking for a strong passive income and want to benefit from capital appreciation along the way, invest in these three high-yield bank stocks right now.

Bank of Montreal

When it comes to dividends, trust Bank of Montreal (TSX:BMO)(NYSE:BMO) stock. It has the longest dividend payment history of 191 years. Its dividends have grown at a CAGR (compound annual growth rate) of over 6% in the last 15 years.

The bank’s ability to generate strong net earnings through higher loans and deposits and efficiency improvements has helped Bank of Montreal to pay dividends since 1829. While near-term challenges are taking a toll on its net earnings, its payouts are pretty safe.

Bank of Montreal’s interest-bearing assets continue to grow at a modest pace, despite the tough operating environment. Meanwhile, its strong deposits base is encouraging. The bank is well capitalized, and its target payout ratio of 40-50% is sustainable in the long run.

The bank currently offers a high yield of 5.7%. Further, its stock has declined over 26% year to date, providing a good entry point for long-term investors.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a must-have bank stock in your portfolio to squeeze high-yields. Though the bank has temporarily stopped any dividend hikes amid the COVID-19 outbreak, its yield of 5.3% still looks attractive and is safe.

The bank’s consistent earnings growth and robust risk management has enabled it to pay dividends for 164 years. Moreover, in the last 20 years, Toronto-Dominion Bank’s dividends have increased by an annualized rate of 10%.

The bank’s retail focus business model supports earnings growth and minimizes risk. Steady growth in loans and deposits support its net interest income.

Investors should note that Toronto-Dominion Bank’s high-quality balance sheet, strong capital positioning, and diversified revenue channels should continue to support its payouts. Moreover, improved loans and deposit volumes and higher activity in the wealth and insurance businesses should help the bank to weather the crisis easily.

Royal Bank of Canada

With an annualized yield of 4.6%, Royal Bank of Canada (TSX:RY)(NYSE:RY) is among the top Canadian banks offering high and safe yields. Similar to its peers, the bank also has a long history of consistently increasing its dividends. Investors should note that Royal Bank of Canada’s dividend has grown at a CAGR of 7% in the past decade.

Despite challenges, Royal Bank of Canada’s loans and deposits showed healthy growth in the most recent quarter. Besides, the bank is well capitalized with its capital ratios remaining well above the regulatory requirements.

With sustained momentum in interest-bearing assets and improved efficiency, Royal Bank of Canada’s dividend payout is safe.

Bottom line

Investors should note that these three Canadian banks should weather the current crisis easily and maintain their payouts. The recent pullback in their stocks and a gradual increase in economic activities suggest that investors are likely to see an increase in their investment value over time.

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Fool contributor Sneha Nahata has no position in any of the stocks mentioned.

The post 3 High-Yield Bank Stocks to Buy Right Now appeared first on The Motley Fool Canada.



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Share Market

Which Way Wednesday – Fed Edition

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And once again the Futures are up.  

As you can see from the S&P chart, we have had some massive gaps up in the thinly traded open and then drifted down during real trading at the end of the day.  This is like someone who works for the auction house shouting "100 Million Dollars" on the first bid for a painting to make sure the other suckers in the audience start bidding higher.

In the case of the markets, the Banksters buy up the Futures on thin trading (so it's very cheap to do) and cause the Retail Suckers to pour in and chase the momentum so the Banksters can dump their stocks all day long during real volume trading.  This is how rich people exit the market – they create a buying atmosphere and they take their profits while poor people follow their advice – which doesn't actually apply to their own actions.  You see the big brokerage houses doing that all the time, exiting positions while their analysts are pumping the Tesla stock.

We had a good day yesterday shorting the Dow (/YM) Futures from our trade idea in the Morning Report and congratulations to all who played along.  Our morning call for our Members was:

So we're sticking with our strategy of shorting the indexes (which didn't work yesterday) as we're likely to be rejected here (Dow (/YM) 28,100, S&P (/ES) 3,405, Nasdaq (/NQ) 11,475 and Russell (/RTY) 1,550) and, as usual, we can just short the laggards, which would be /ES crossing below 3,400 and /YM confirming below 28,000 – we should catch a quick ride down but the Fed goes tomorrow and that should give the marketsupport until they are disappointed by that so tight stops above!

As you can see, this wasn't rocket science, the pivot points on the Dow were 28,014 and 27,795 and we simply allowed for the pre-market BS pump job and took a stab at shorting early but once we confirmed the move below 28,000, it was a no-brained to jump in for the 200-point drop on the Dow (at $5 per point, per contract!).  This morning we're back to 28,000 again but we have a Fed Meeting at 2pm so it's not a good day to play the futures – too volatile.

Speaking of volatile, 

 

 

 

   

 

 

 

IN PROGRESS

 

 

 



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The IPOX® Week, September 14th, 2020

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  • IPOX Indexes trade mixed as IPOX Europe (ETF: FPXE) gains ahead of U.S. Futures & Option expiration.
  • IPOX SPAC Index (SPAC) adds +1.78% last week.
  • Amid strong demand for quality deals, global New Listings calendar busy: Snowflake, JFrog, Sumo Logic, Unity, Palantir, Knaus Tabbert and The Hut Group line up for debut.

IPOX Indexes trade mixed as Europe outperforms ahead of U.S. Futures & Options expiration. Amid declining risk (VIX: -12.62%) and U.S. yields, the IPOX Indexes traded mixed last week. In the U.S., e.g, the FANG-free, asset allocation-focused IPOX 100 U.S. (ETF: FPX) declined by -1.48% to +13.35% YTD, extending the YTD (YY) lead vs. the S&P 500 (SPX), benchmark for U.S. stocks, to +994 bps. (+654 bps.). Here, deteriorating sentiment for large-cap U.S. technology stocks after the big run-up weighed on sentiment (NDX: -4.60%) of the technology-focused portion of the IPOX 100 U.S. (ETF: FPX), including application software maker Coupa (COUP US: -14.87%), real time messaging software maker Slack (WORK US: -11.73%) and electronic signature solutions provider Docusign (DOCU US: -8.47%). A strong week for ride hailing services provider IPOX heavyweights Uber (UBER US:


+11.25%)

and social networker SNAP (SNAP US: +7.80%) helped sentiment. Abroad, the IPOX International (IPXI), underlying for the $300 million “FPXI” ETF, dropped -0.94% to +40.73% YTD. Profit-taking across the Asia-Pacific-traded portion of the portfolio contributed significantly, including data center operator GDS (GDS US: -7.29%), ecommerce platform provider Meituan Dianping (3690 HK: -7.26%) and logistics services company SG Holdings (9143 JP: -6.29%). IPOX heavyweight Nexi (NEXI IM: +15.10%) surged after the Italian payment processor and SIA Group said to be close to clearing a key hurdle to their potential merger.

Track the performance of U.S. SPACs live with the IPOX® SPAC Index (BBG: SPAC, Reuters: .SPAC): The liquid IPOX SPAC (SPAC) added +1.78% last week, outperforming the S&P 500 (SPX) and Russell 2000 (RTY) anew. IPOX SPAC news include: 1) sales and marketing services provider Advantage Solutions to merge with Conyers Park II Acquisition; 2) zinc battery maker Eos Energy Storage enters into definitive agreement to combine with B. Riley Principal Merger II; 3) real estate tech unicorn Opendoor reportedly in talk with Social Capital Hedosphia II for reverse IPO; 4) Pershing Square Tontine split unit; 5) 9 SPACs launched and at least 8 SPACs filed last week.

Select IPOX® Indexes Price Returns (%) Last Week 2019 2020 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) -2.15 27.93 35.35
IPOX® International (IPXI)* (USD) (ETF: FPXI) -0.94 31.37 40.73
IPOX® Indexes: United States
IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX) -1.48 29.60 13.35
IPOX® ESG (IPXT) (USD) -2.57
IPOX® SPAC (SPAC) (USD) 1.78
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 2.16 34.55 19.18
IPOX® Nordic (IPND) 0.96 38.52 32.65
IPOX® 100 Europe (IPOE)* (USD) 1.85 30.97 13.87
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) -0.12 4.41 28.26
IPOX® China (CNI) (USD) -2.59 26.31 48.28
IPOX® Japan (IPJP)** (JPY) -1.97 37.91 9.48

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact info@ipox.com

IPOX-linked ETFs (FPX, FPXI, FPXE) Movers (Last Week in %):

Nexi SpA 15.10 Coupa Software Inc -14.89
Selectquote Inc 14.34 Chewy Inc -12.05
Camping World Holdings Inc 13.58 Slack Technologies Inc -11.73
Adaptive Biotechnologies Corp 12.41 Zealand Pharma A/S -11.68
DraftKings Inc 12.05 Tesla Inc -10.90
Uber Technologies Inc 11.25 AZEK Co Inc/The -10.59
BioNTech SE 11.20 NortonLifeLock Inc -9.66
Infrastrutture Wireless Italiane 9.15 Bilibili Inc -8.51
GFL Environmental Inc 8.74 DocuSign Inc -8.47
Snap Inc 7.80 Knorr-Bremse AG -8.13

IPO Deal-flow Review and Outlook: Korean messaging app Kakao‘s game unit more than doubles in debut. Flurry of deals lined up. 6 firms went public across the eligible global markets last week, with the average (median) equally-weighted offer deal adding +61.50% (+28.17%) based on the difference between final offer price and respective Friday’s close. Deals including Chinese bottle water giant Nongfu Spring (9633 HK: +62.79%), Korean messaging app Kakao’s Game unit spin-off (293490 KS: +237.92%) and Warburg-backed Brazilian pet store Petz (PETZ3 BZ: +18.91%) all debuted strongly, while fast food chain Yum China (9987 HK: -3.64%) fell on its homecoming secondary H.K. offering. The U.S. IPO market is set for a busy week with firms including Buffett and Salesforce-backed $24B cloud data platform Snowflake (SNOW US), Dell-backed $3B+ DevOps software developer JFrog (FROG US), Tiger Global-backed $2B+ data analytic firm Sumo Logic (SUMO US), and Sequoia-backed $11B+ game software company Unity (U US) lined up, while the European IPO market is set to revive with British e-commerce unicorn The Hut Group and German camper van maker Knaus Tabbert (KTA GR) scheduled. Much anticipated data analytics unicorn Palantir (PLTR US) also readies its Direct Listing. Other IPO news include: 1) CVC-owned Petco weighs IPO sale; 2) collaborative software unicorn Asana set date for Direct Listing (9/30).

Track global deal flow live on: https://bit.ly/32zolmG

The post The IPOX® Week, September 14th, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.



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Forward Thinking Friday: Celebrating National Hispanic Heritage Month

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If you’re a Hispanic-owned business who works with the B-Stock network, we’d love to hear from you! Drop us a line so we can feature you in our Spotlight article at the end of the month.

Email Us

This week, we’re excited to launch our new blog series, Forward Thinking Friday (#FTF), which will spotlight the diversity across our communities. For our first article, we’re showcasing National Hispanic Heritage Month, which kicked off this week.

What is National Hispanic Heritage Month?

Hispanic Heritage Month is observed every year from September 15th to October 15th. The month-long commemoration celebrates the cultures, history, and contributions of Americans whose ancestry comes from Spain, México, the Caribbean, and Central and South America.

Inception

In 1968, the movement to celebrate Hispanic cultures was founded as Hispanic Heritage Week under the administration of President Lyndon B. Johnson. Twenty years later, President Ronald Reagan expanded the event to a 30-day period, from mid-September to mid-October. The history of Hispanic peoples seeking independence has created a bond between them and American values, and this month recognizes and celebrates the contribution and influence of Hispanic Americans to the history, culture, and achievements of the United States.

Hispanic vs. Latin – What’s the Difference?

While the terms Hispanic and Latin are sometimes used interchangeably, they are different:

People who are Hispanic come from—or are descendants of—a Spanish-speaking country.

  • Argentina, Bolivia, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Equatorial Guinea, Guatemala, Honduras, México, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Spain, Uruguay, and Venezuela.

People who are Latin come from—or are descendants of—a Latin-American country.
All the above plus Brazil, French Guiana, Guadeloupe, Haiti, Martinique, Saint Barthélemy, and Saint Martin

  • A person can be both Hispanic and Latino(a), but not all Latinos are Hispanic: Brazilians, for example, are Latinos, but their native language is not Spanish. Conversely, not all Hispanic people are Latin: Spaniards are considered Hispanic, but not Latinos, since they are part of the European Union.

About the Hispanic Community

The Hispanic community is the second largest- and fastest-growing demographic in the United States after Asian Americans. This represents a current population of nearly 59 million people, roughly 18% of the population. Some famous Hispanic-Americans include:

How Can You Celebrate?

Here at B-Stock, we reached out to our team members asking for input on Hispanic Heritage Month. In addition to educating the team on the above-referenced facts, Product Manager Alex Cadalso also had the following recommendations about celebrating:

B-Stock is proud to celebrate Hispanic culture alongside our colleagues and our diverse network of sellers and buyers. Happy National Hispanic Heritage Month!

The post Forward Thinking Friday: Celebrating National Hispanic Heritage Month appeared first on B-Stock Solutions.



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