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Stock Strategist

Canadian Banks Simply Produce Results

We highlight the wonderfully boring investment potential of these firms.

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After reviewing the newly expanded International Stalwarts list in the October issue of Morningstar StockInvestor you may have asked yourself, "What gives with all of the Canadian banks?" In addition to Royal Bank of Canada  (RY), which was one of the original Stalwarts, we added four additional wide-moat Canadian banks to the list last month:  Bank of Montreal  (BMO), Bank of Nova Scotia  (BNS), Canadian Imperial Bank of Commerce (CM), and Toronto-Dominion Bank  (TD).

I believe these are all very solid banks that would make fine investments if they fell to our 5-star prices. In addition to their strong business models, which we'll highlight below, the Canadian banks are quite shareholder friendly and pay healthy dividends. At our Consider Buying prices, and based on this year's current dividend, each of the five banks would sport a dividend yield near to or above 4%.

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Ryan Batchelor does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.