Canadian Banks to raise dividends... 12:29 PM EST, 11/23/2021 (MT Newswires) -- All of Canada's big banks are expected to raised their dividends when they report fourth quarter results, TD Securities said on Tuesday.
Analyst Mario Mendonca said he is forecasting Q4 earnings per share to rise 29% year-over-year for the group when they report between November 30 and December 3.
"This quarter, we expect the focus to be on dividend increases, stock repurchase intentions, and, as we have seen throughout all of 2021, pretax pre-provision earnings," Mendonca said in a note to clients.
The analyst's forecasted dividend increases range from 4% for Bank of Nova Scotia (BNS.TO), to 27% and 18% respectively for National Bank of Canada (NA.TO) and Bank of Montreal (BMO.TO).
Mendonca said Royal Bank of Canada (RY.TO) and BMO should lead the group in terms of share buybacks.
He rates BNS at Buy with a $90 target price, RBC at Buy with a $155 target, National Bank at Hold with a $105 target, CIBC (CM.TO) at Buy with a $170 target, and BMO at Buy with a $150 target.