Loaded the boat with shares todayNot that it matters to anyone but I could not resist myself anymore. The bank sure has some stuff its working through: share price digesting the 7M share issuance, the potential write off of up to $165 million in Maple Financial Group, & the Q4 restructuring fee of $64 million. However, this bank has the most attractive future PE Ratio of any bank. With a 2016 EPS estimate of ~$4.80 (2015 EPS estimate was $4.59), National Bank currently trades at a very attractive ~8.5 X future earnings. A tremendous deal for this quality of company. A 45% payout ratio means we should see another bump in the dividend in 2016.
Regarding share price: National Bank has gone from being one of the best performing banks to the worst performing bank in 6 months. The big 5 have all started to move and National Bank looks like its almost finished forming its bullish falling wedge.
I like the 5+% dividend and I plan on selling calls against my shares to hopefully boost the distribution up to 9+%.
We have an average share price target of $48 (17% upside).
Cheers to the longs,
dsark