TD, ETFs and US Stocks

 

With the Canadian banks, TD Bank has an ex-dividend date of July 10th and undervalued with a current dividend yield of 5.39% . TD has a dividend growth rate of 7+%. Numbers I like as the bank deals internally with compliance and training while it shakes up that department and has set aside millions for upcoming fines for breaches in some of their US branches. 

It is opposite to conventional thinking when it's about issues like higher unemployment rates. During elections, there's usually promises of more jobs to get politicians elected or re-elected in their riding or seeking leadership. Central Banks think of it as a positive when more people lose their jobs and more inclined to lower interest rates, perhaps again this fall. However, inflation seems to be ticking up again, although not surprising to me. 

It's in my best interest that rates come down eventually where it should favour the stocks while on the subject of banks in this post.

There are a lot of new bank and financial related ETFs being added in 2024. Curiosity gets the best of me so I look over a lot of these with a reasonable MER, management fees and yield while considering risk. Meanwhile I continue to buy the individual bank stocks with Bank of Montreal, BMO and Royal Bank, RY having ex-dividend dates later in this month of July with attractive yields.

BMO also has a couple of popular all Bank ETFs, ZWB paying a 7% yield with monthly distributions and ZEB ... equal weight Canadian banks ETF, also paying monthly with a 4+% yield to consider. 

On my radar these days, is adding some decent dividend paying US stocks of which there are many. I'll get into that deeper in my next post and seems to be a theme with the Bloggers and newsletters I read lately with the tech fuelled S&P 500 index down south. My interest is more about how the high dividend US stocks are doing minus the tech related 7 stocks that some say could be an AI bubble that will pop some day in the future. 

Lots to consider like currency exchange rates and fees and the foreign 15% deducted from dividends/distributions unless in an RRSP. Are CDRs a better option? ... Canadian Depository Receipts that pay proportional dividends to the amount invested.