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Highlights
- The S&P/TSX Capped Financial Index surged by 1.75 per cent month-to-date (MTD)
- BNS stock's market cap was US$ 81.89 billion and the price-to-earnings (P/E) ratio was 9.5
- RY stock holds a dividend yield of about four per cent
Banking stock prices started rising again in March after a continuous decrease of approximately a month and a half, and they have continued to grow through April. Although almost all bank stocks have increased, not all would be worthwhile to explore for April.
The S&P/TSX Capped Financial Index surged by 1.75 per cent month-to-date (MTD); on April 17, the index had jumped by 0.5 per cent.
In this article, let's look at two banking stocks in Canada and see if they are worth exploring in this quarter:
Bank of Nova Scotia (TSX:BNS)
The Bank of Nova Scotia (BNS) stock is one of the top high-yielding financial stocks in the country. As of writing, the BNS stock's market cap was US$ 81.89 billion, and the price-to-earnings (P/E) ratio was 9.5.
The bank announced to pay a quarterly dividend of C$ 1.03 per share, which would be payable on April 26. Meanwhile, the dividend yield of the BNS stock was about six per cent.
The BNS stock could be explored if a stock market enthusiast is looking for passive income. However, only after thorough research and analysis.
In Q1 2023, the bank's net income was C$ 1,772 million, and the diluted earnings per share were C$ 1.36.
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Notably, the bank's total revenue amounted to C$ 7,980 million compared to C$ 7,626 million in the previous quarter.
Royal Bank of Canada (TSX:RY)
Despite the fact that all Canadian banks qualify as blue-chip companies, only the Royal Bank of Canada qualifies as the largest bank in Canada (by market cap). It holds the title of Canada's largest publicly traded company and is also the country's largest bank stock. It has held this title for a considerable amount of time.
RY stock holds a dividend yield of about four per cent, and its price was up by 0.56 per cent to C$ 133.53 per share on April 17.
On May 24, the bank is expected to pay a quarterly dividend of C$ 1.32 per share, and Royal Bank has witnessed a dividend growth of 5.8 per cent in the last three years.
The bank's net income in Q1 2023 was C$ 3.2 billion, and diluted EPS stood at C$ 2.29. Meanwhile, the Royal Bank's CET1 ratio was 12.7 per cent, and its return on equity was 12.6 per cent.
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.
