Analyst Recommendation COMMENT
Canadian banks.(A Commentary)
22/06/2023
Canadian banks.
Won't cut dividends, but some may delay dividend increases until we get through this rough patch. The hard thing to predict in Canada is how bad the housing mortgage situation may get.
There's a view that higher interest rates will automatically crush homeowners. However, about 33% of Canadian homes don't have a mortgage, and another 1/3 have a fairly low ratio mortgage. So only 1/3 of mortgages are somewhat at risk. Many millennial homeowners also have boomer parents who are able to help out.
Michael Decter
HOLD
Canadian Imperial Bank of Commerce (CIBC)(CM-T)
22/06/2023
Seen as most troubled Canadian bank. Regulatory scrutiny on balance sheet. Among the highest dividends. Prefers RY and TD for the stronger balance sheets. May have more downside, but don't be afraid of it.
Banks
Michael Decter
$55.930
No