Royal Bank (RY) & CIBC (CM): 2 stocks to bank on as omicron fear rises

January 12, 2022 07:31 PM AEDT | By Kajal Jain

Royal Bank (RY) & CIBC (CM): 2 stocks to bank on as omicron fear rises — Image source: ©2022 Kalkine Media®

Royal Bank of Canada (TSX:RY)

Royal Bank of Canada, which presently has a market capitalization of C$ 203 billion, posted earnings of C$ 3.9 billion in the fourth quarter of fiscal 2021 compared to C$ 646 million in the same period a year ago.

Royal Bank is also set for a quarterly dividend payment of C$ 1.20 apiece on February 24.

Stocks of Royal Bank closed at C$ 142.53 apiece on Monday, January 10, giving a one-year gain of nearly 32 per cent.

Also read: Dollarama (TSX:DOL) & Lululemon: Why are the consumer stocks trending?

Canadian Bank Imperial of Commerce (TSX:CM)

Canadian Bank Imperial Bank of Commerce, aka, CIBC, recently extended its commercial banking services to equipment financing, which includes capital expenditures, acquisitions and sale-leasebacks.

The C$ 70-billion market cap bank recorded a net income of C$ 1.44 billion in Q4 FY2021, as compared to C$ 1.01 billion a year ago.

The bank is scheduled for a quarterly dividend pay-out of C$ 1.61 apiece on January 28.

CM scrip closed at C$ 157.06 apiece on Monday and gained roughly 40 per cent in the last year.

Bottom line

Investing in banking stocks can fetch significant value to investors in the long haul. However, economic slowdown and shocks can impair any stock’s performance. Thus, investors should take an informed investment decision.

Also read: 5 best TSX value stocks to buy in 2022

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