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Summary
- The two banking stocks have returned over 9 per cent in the last three months.
- Royal Bank of Canada is paying a quarterly cash dividend of C$ 1.08 and currently yields 4.137 per cent.
- Canadian Imperial Bank of Commerce is offering a quarterly dividend of C$ 1.46 per stock. It holds a current dividend yield of 5.238 per cent.
The financial sector’s shift towards digital mode accelerated after stringent lockdown was imposed across Canada. During the COVID-19 pandemic crisis, the volatile market pressed the bankers to accept disruptive changes. Somewhere, these innovative changes have been guiding the financial sector towards sustainable performance.
RBC Economics’ latest report indicates how the digital transformation may impact consumers, corporates, and policymakers in 2021. Some industries are already rushing into a new period of growth and improvement; others are analyzing their conventional versions that may not survive in this evolving market.
Let us have a closer look at the following banking stocks: Royal Bank of Canada and Canadian Imperial Bank Of Commerce.
Royal Bank of Canada (TSX:RY)
Current Stock Price: C$ 104.43
The lender stock has surged by nearly 9 per cent in the last three months. Its scrips are up over 12 per cent in the last six months and trading flat year-to-date (YTD).
The 10-day average stock trading volume is 3.28 million units. The bank stock is a part of TMX’s top volume list and top financial list – both a list of stocks that have outperformed their peers with the largest gains on the TSX and TSXV in the last 30 days.
The bank pays a cash dividend of C$ 1.08 per stock and holds a present dividend yield of 4.137 per cent.
The blue-chip stock’s profit-to-earnings (P/E) ratio is 13.40. The stock offers a positive return on equity (ROE) of 13.68 per cent. The price-to-book (P/B) ratio is 1.841, and its earnings per share (EPS) is C$ 7.84, as per TMX data.
However, the bank reported a net income of C$ 11,437 million for 2020, a decline of 11 per cent from the prior year.
Canadian Imperial Bank Of Commerce (TSX:CM)
Current Stock Price: C$ 111.49
CIBC stocks have also returned 9 per cent in the last three months. The financial stock has swelled over 19 per cent in the last six months. The stock is up by 3 per cent YTD.
CIBC stocks have also been ranked among TMX’s top volume and top financial stocks. Its 10-day average stock trading volume stands at 2.75 million units.
The stock is delivering a current ROE of 9.75 per cent. Its present EPS is C$ 8.23, and its P/E ratio is 13.50. Its D/E ratio is 0.15, as per the TMX portal.
The bank distributes a quarterly cash dividend of C$ 1.46 to its unitholders and currently yields 5.238 per cent.
In the fiscal year 2020, the bank’s reported net income was $3.8 billion against a reported net income of $5.1 billion for the fiscal year 2019.
