Issue 34 – Did Someone Say Dividend?!
So far this quarter, two banks have reported their earnings and both have increased their dividend. Royal Bank of Canada (TSX: RY) raised its quarterly dividend by 5% to $0.91, which was higher than expected. CIBC (TSX: CM) raised its quarterly dividend 2.4% to $1.30 from $1.27. In general, over the past few years, Canadian banks have reported strong financials quarter after quarter. However, they are not getting much respect compared to their US competitors. It appears the Canadian housing market and Canadian debt levels have overshadowed the positive news from Canadian banks. Meanwhile, the Canadian economy is firing on all cylinders and even the province of Quebec is experiencing the best economic expansion and unemployment rate in 40 years.