So now you have improved dividend yields and a market that will not bite. There can be several reasons for this.
- The anticipation was so great the price had already been bid up. Maybe yes Maybe no
- The market is still wary of financial institutions and does not believe anything they say. Less maybe and more probably.
- Dividend investors do not have rapid fire reflexes normally found on trading desks. They accumulate more slowly. Check
- Canadian investors have about as much exposure as they want to Canadian banks and do not want or need more. Check again.
- American and International investors do not have Canadian banks on the radar and are just missing a good deal. It’s happened before.
The Canadian bank dividends were all popped on the same go.They will all tell you they are not a cartel. While this can be debated Canadian Banks certainly know on what side their bread is buttered. For a Canadian Bank usually on both sides. In the meantime watch for the Investor Relations machines to crank up for Canadian Banks.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter @financialskepti
- RBC, TD, CIBC post blow-out Q3, boost payout. What was that about headwinds? (business.financialpost.com)
- Big Five Canadian Banks Hard to Beat (minyanville.com)
- Too-big-to-fail and dividends: Can we have one without the other? (business.financialpost.com)