4 Dividend-Paying Bank Stocks To Buy & Hold In 2021

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Bank stocks have been back on track in the wake of global economic revival. Most financial stocks have surpassed their pre-Covid levels. In this article, we will focus on the Toronto Stock Exchange-listed dividend-paying bank stocks that have returned double-digit growth in one year.

The S&P/TSX Capped Financial Index has bounced back by 11.11 per cent year-to-date (YTD) and surged by 16.63 per cent in one year, outshining the S&P/TSX Composite Index that has increased by 14.11 per cent the same time.

Here are four banking stocks to explore for constant quarterly dividend and handsome returns:

Laurentian Bank of Canada (TSX: LB)

The bank will pay C$ 0.40 per stock quarterly dividend to its shareholders on May 1, 2021. It has a dividend yield of 3.909 per cent and a return on equity of 4.71 per cent.

This mid-cap financial stock has swelled over 31 per cent this year, led by the strong profit from the first fiscal quarter of 2021. The bank share has a one-year return of 10.29 per cent.  It is currently trading at its 52-week high of 40.93.

Laurentian Bank's One-Year Stock Performance Chart. (Source: Refinitiv)

Laurentian Bank registered a profit of C$ 44.8 million in Q1 FY21, a surge of 39 per cent year-over-year (YoY).

Royal Bank of Canada (TSX: RY)

The large-cap bank offers a quarterly dividend of C$ 1.08 per stock for the current quarter of 2021. The blue-chip share has risen 17.42 per cent in one year, with almost 14 per cent of return on equity. Its dividend yield is 3.773 per cent.

It is trading at 52-week high of 114.49 and up more than 9 per cent YTD. It has soared 59 per cent from its coronavirus-led 52-week low of C$ 72 per piece (plunged on March 23, 2020).

RY Bank's One-Year Stock Performance Chart. (Source: Refinitiv)

The bank’s profit rose over 10 per cent YoY to C$ 3,847 million in Q1 FY21.


Toronto-Dominion Bank (TSX:TD)


This Canadian lender has declared dividends of C$ 0.79 per common share this quarter. The dividend yield is 3.911 per cent.

The stock also has an impressive one-year return of 23.44 per cent and over 12 per cent YTD.

It has an attractive return on equity of 13.44 per cent.

TD Bank's One-Year Stock Performance Chart. (Source: Refinitiv)

One of the big six banks of Canada, TD also reported a 10 per cent rise in its first fiscal quarter of 2021, propelled by the lower provision for credit losses.


Bank of Nova Scotia (TSX: BNS)

The creditor delivers a quarterly dividend of C$ 0.90 per stock for the latest fiscal quarter of FY21. It is carrying a dividend yield of 4.613 per cent and a return on equity of over 10 per cent.

The stock has marginally beaten the financial index and posted one-year growth of 16.32 per cent. Its quarter-to-date return stands at 13.43 per cent. The current share price of 78.04 has topped the previous 52-week high of 77.61 per share.

Scotiabank's One-Year Stock Performance Chart. (Source: Refinitiv)

Scotiabank recorded a profit of C$ 2,398 million in the first quarter of FY21, slightly up by 3 per cent YoY.



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