- The S&P/TSX Capped Financial Index dropped by almost 10 per cent year-to-date.
- CI Financial said its (preliminary) US wealth management assets increased by 71.2 per cent year-over-year on June 30, 2022.
- Sun Life Financial recently had announced a quarterly dividend of C$ 0.69, which is payable on September 29.
The S&P/TSX Capped Financial Index dropped by almost 10 per cent year-to-date (YTD) as widespread economic uncertainties continue to hit market sentiments. In a such volatile environment, financial stocks can help investors tackle short-term fluctuations and build wealth in the long run.
Hence, Kalkine Media® presents five TSX-listed financial stocks currently available at discounted prices and can be explored for long-term gains.
1. Canadian Western Bank (TSX: CWB)
Canadian Western is a mid-cap banking firm that offers business banking and personal banking solutions. Canadian Western Bank stated its net interest income was C$ 226.1 million in Q2 2022, up from C$ 216.96 million in the same period last year. Non-interest income also jumped by eight per cent year-over-year (YoY) to C$ 32.65 million in the latest quarter.
Stocks of Canadian Western Bank tanked by over 23 per cent in 52 weeks. As per Refinitiv findings, CWB stocks had a RSI value of 56.28 on August 8, 2022. The RSI value above 30 and below 70 indicates a moderate momentum.
2. CI Financial Corp (TSX: CIX)
CI Financial is an asset manager that offers diversified wealth management solutions. The C$ 2.77 billion market cap company posted preliminary total assets of C$ 333.7 billion as of June 30 this year. The company, while reporting preliminary data, said that its asset management assets amounted to C$ 116.1 billion on June 30, 2022, down from C$ 138.2 million a year ago. Canada wealth management assets dropped by 1.9 per cent YoY to C$ 74.1 per cent at the end of June 2022. Meanwhile, US wealth management assets increased by 71.2 per cent to C$ 143.5 billion.
CI Financial is set to disburse a quarterly dividend of C$ 0.18 on October 14. Stocks of CI Financial have slumped by 38 per cent in 12 months. According to Refinitiv data, CIX stocks had an RSI value of 50.58 on August 8, 2022
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3. Toronto-Dominion Bank (TSX: TD)
Toronto-Dominion recently revealed signing a definitive agreement to acquire New York-based financial service provider Cowen for a cash consideration of US$ 1.3 billion. The Canadian lender aims to expedite its long-term growth strategy in the US through this acquisition. The bank expects this deal to close in the first quarter of the calendar year 2023 and is subject to customary closing conditions.
Toronto-Dominion stocks dipped by over 14 per cent in 2022. As per Refinitiv findings, TD stocks seems to be on a moderate trend with an RSI value of 49.38, supported by 1.94 million share switching hands on August 8, 2022.
4. Sun Life Financial Corp (TSX: SLF)
Sun Life Financial announced a quarterly dividend of C$ 0.69, payable on September 29, despite reporting decreasing net profit of C$ 785 million in Q2 2022 compared to C$ 900 million a year ago. However, the large-cap insurance company posted a growing underlying net profit of C$ 892 million in the latest quarter, relatively high from C$ 883 million recorded in the same period last year.
Stocks of Sun Life Financial lost almost 17 per cent in six months. On August 8, SLF stocks held an RSI value of 61.12 (indicating medium-to-high momentum), according to Refinitiv information.
5. IGM Financial Inc (TSX: IGM)
IGM Financial is a Winnipeg, Manitoba-based company engaged in asset management business. IGM Financial held a market capitalization of C$ 9.07 billion. The Canadian financial company said it will distribute a quarterly dividend of C$ 0.563 on October 31, this year. This dividend announcement came despite declining net income in Q2 2022.
IGM Financial posted total revenue of C$ 824.72 in the second quarter this year compared to C$ 843.87 million in the same quarter of 2021. Net income amounted to C$ 207.1 million in the latest quarter, compared to C$ 237.38 million in Q2 2021. Stocks of IGM Financial shed nearly 17 per cent in 12 months. As per Refinitiv data, IGM scrips saw an RSI value of 64.96 on August 8, 2022.
The TSX financial index gained by over three per cent quarter-to-date (QTD). Hence, investors with focus on long-term approach can explore these TSX financial stocks to generate substantial value. Also, these financial companies distribute dividends, and could bolster passive income streams.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.