Well Rounded Investor

My journey of becoming financial independence by 35 years old

Recent buys – mini Canadian Bank ETFs

With the news of Chinese devaluates its yuan for the nth times sending the dollars even higher and the weak oil prices hurts Canadian multibillion dollars industry to the core. So far this year, the Canadian has decreased interest rate several times. Of course this is to stimulates businesses, but whenever there are winners, then there should be losers (at least for short-term). I’m talking about Canadian Banks.

Canada

I bought 10 shares of BNS @ $45.60 added $21.60 to my annual dividend

10 shares of BMO $54.55 added $25.3 to my annual dividend

10 shares of RY @ 57.17 added $23.6 to my annual dividend

10 share of CM @69.17 added $35.2 to my annual dividend

Stock ticker            PE                    Future PE              Cash per share

BNS.                       10.48.               7.56.                      192.21

BMO.                     11.57.                  7.60.                     275.51

RY.                          10.64.                8.23.                      205.83

CM.                         10.34.                 7.18.                     250.12

They all have payout ratios of 48% that means dividend have room to grow. Cash per share is 4-5x the stock price, so they have plenty of cash to weather the oil storm unlike the 2008-2009 financial crash. I don’t believe the Canadian economy will recover before the US’s economy. I don’t know if these stocks will go down even more, but at 52 week low level, I know I have to pull GE trigger on the buys.

As Candian decrease interest rate even more, the banks will get to borrow money for next to nothing, and intern lending the money out at higher interest rate. As long as nothing fish going on like money laundering, or Subway’s Jerod child pornography scandal, banks will continue to be profitable. No doubt about that.

What’s about you? Are you long or short Canadian Banks? Are you picking a winner or are you creating your own mini-ETFs?

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8 comments on “Recent buys – mini Canadian Bank ETFs

  1. Dividend Freedom
    August 20, 2015

    I like the buy!

    I am considering buying BNS as soon as I get some capital 🙂

    Thanks for a nice blog!

    Stay in touch.
    Dividend Freedom

    Like

    • Vivianne
      August 25, 2015

      It was sweet today with the down -1000 points. More capital is one of the problem with today sell off as most people are 80-100% equity or non at all … aka Mr. WRI. 🙂

      Like

  2. roadmap2retire
    August 20, 2015

    Cant go wrong with the Canadian banks at these prices, WRI. Congrats on adding more to your income stream! I am a huge fan of the Canadian banks and the dividend streak – few companies can claim records such as them.

    I am long TD and BNS – would love to add more banks in the future
    R2R

    Like

    • Vivianne
      August 25, 2015

      I realized I didn’t have TD, so I added TD to complete the major Canadian banks ETFs 😉 I might not add anymore share unless it was back down to today’s level. 🙂

      Like

  3. ambertreeleaves
    August 24, 2015

    building a custom ETF is a nice idea.It sounds like a good idea to buy them all, rather than figuring out the bank that will be best this year or next year or next decade.

    Like

    • Vivianne
      August 25, 2015

      yes, especially with 10 shares of each, I feel like I’m lessen the risk this way.

      Like

  4. Pingback: October Dividend Income +45.93% | Well Rounded Investor

  5. Pingback: November Dividend Income +26.3% | Well Rounded Investor

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