The predictability with respect to dividend hikes makes these bond proxies ultra-attractive. Indeed, dividend growth is one of the key reasons investors choose to buy shares of TD or Royal Bank stock. Dividend hikes are inevitableĪs per the Office of the Superintendent of Financial Institutions (OSFI), a moratorium on dividend increases on Canadian banks has somewhat hurt the investment thesis for long-term investors. Thus, from a stability standpoint, there’s a lot to like with these winners. These are among the two largest banks in Canada and some of the biggest banks globally. However, Central Bank stimulus has propped up the economy, with lenders benefiting directly.Īccordingly, those bullish on the long-term landscape for Canadian banks will like TD and Royal Bank. Of course, the pandemic provided quite a scare to this sector (and most, for that matter). Indeed, barring any sort of serious economic crisis, banks are an amazing place to park one’s money.ĭuring long bull markets, such as the one that’s been underway for some time, Canadian banks have outperformed. One of the primary reasons investors choose to invest in Canadian banks is the stability these stocks provide. Here’s more on why these bank stocks could be among the best dividend stocks to consider right now. Two of the top Canadian banks I think are worth of every investor’s attention right now are Toronto-Dominion Bank (TSX:TD) (NYSE:TD) and Royal Bank of Canada (TSX:RY) (NYSE:RY). These banks provide not only dividend stability, but also an impressive track record of growth over time.
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Additionally, most banks provide dividend yields well in excess of where bonds are trading at right nowįor those nearing or entering retirement, that sort of dividend income is important. These banks tend to provide extremely stable returns over time. There are many reasons investors choose Canadian banks as core portfolio holdings. Written by Chris MacDonald at The Motley Fool Canada