Best Canadian Bank Stocks (2024) – Personal Finance Freedom

Personally, I love Canadian bank stocks. Your investment is always safe and sound in the bank stocks.

If you live in Canada or if you are born in Canada and live elsewhere, there’s one thing you are really proud of, it’s the Canadian Banks. In Canada, we have 5 big banks – RBC, CIBC, BMO, Scotiabank (Bank of Nova Scotia), and TD.

All the stocks mentioned here are blue chips, so your money is safe, sound and earning good dividends over time. Also, all these stocks trade on the Toronto Stock Market (TSE), so you don’t have to exchange your dollars. Investing in Canadian bank stocks is a must for every portfolio. Let’s start with TD Bank.

Bank Stocks

1. TD Bank Stock

TSE Symbol: TD

First of all, I love the TD Bank Stock. Just look at the chart below for yourself. It’s a wonderful growth pattern all the way, over the years!

TD Bank Stock

The reason I’ve considered the maximum time frame in the above chart is to show you how well the stock has performed since its Inception.

TD Bank stock currently trades around $78 Canadian dollars.

Now, along with the insane stock growth, TD stock also pays out a dividend yield of 4.05%. Isn’t that wonderful!

Look at the Dividend Growth Rate of the TD Bank Stock:

TD Bank Stock

The stock’s dividend has increased all the way from $0.14 to $0.79 today (2001 – 2021).

2. CIBC Bank Stock

TSE stock symbol: CM

Personally, CIBC is one of my favourite banks. I have been banking with them for over 5 years now.

Below is the CIBC bank’s stock trading pattern and history:

CIBC Bank Stock

Again, look at the stock’s chart and its wonderful price growth over the years.

Also, do notice the dividend percent of 4.95%, which CIBC stock pays.

Now, let’s quickly look at the dividend growth over the years and compare it to the likes of TD.

CIBC Stock

Did you look at the stock’s dividend growth over the last 20 years? That’s an insane and wonderful right.

So, that was the CIBC stock for you.

Remember, whether you plan to Invest in TD or CIBC or any other Canadian Bank stocks in this list, your money is safe and sound.

Next, BMO.

3. Bank Of Montreal (BMO Stock)

TSE Stock Symbol: BMO

Below is the stock’s chart: (Maximum time frame considered for better analysis)

BMO Stock

If you have carefully noticed, all the three banks discussed so far – TD, CIBC and BMO have similar stock patterns right?

Anyways, BMO currently offers a dividend of 4% on its stock. Moreover, BMO is one of the oldest and well-run banks in Canada.

Let’s quickly look at the dividend growth history of the BMO stock.

BMO Stock Dividend History

Look at that dividend growth over the years, Isn’t that wonderful to watch?

Again, if you’re considering investing in equities, let me tell you this again, in this article we are talking about the best Canadian banks here. These are all large-cap, blue chips and the safest heavens In Canada to park your money for good growth and juicy dividends over time.

Furthermore, Canadian banks are not run like in the US, Canada’s beauty lies in the strength of the financial sector. The central bank controls the interest rates.

4. Scotiabank Stock (Bank Of Nova Scotia)

TSE: BNS

Scotiabank stock

First of all, Scotiabank stock has similar trading patterns and growth to the other bank stocks.

The stock is currently trading around $75 Canadian dollars and pays out a dividend of 4.76%.

What is even more interesting is the bank’s dividend history and growth over the years.

Below is the BNS stock dividend history and growth for the past 20 years.

Scotiabank dividend history

5. RBC or Royal Bank Of Canada Stock

TSE: RY

Royal Bank of Canada is one of the premium and best banks in Canada.

The stock is currently trading at around $108 Canadian dollars. Please find the chart below (again I’ve considered the maximum timeframe for better analysis).

RBC Stock

Furthermore, RBC Bank Stock trades under the symbol RY in the Toronto Stock Market (TSE). The stock currently pays out a dividend of 3.99%.

Regarding the RY dividend history and growth over the past 20 years, please find the chart below.

RBC Stock dividend

So Which Of These Bank Stocks Are A Better Buy Today?

First of all, before we can pick on the actual winner or the best bank here, you need to consider a ton of metrics or ratios in order to determine the better stock to buy today.

Amongst these metrics, one of the most important factors is to know how undervalued a stock truly is or the P/E ratios.

Again just a small caveat, when we talk about the P/E, you have the forward P/E as well. The Stock Price of the company usually factors in the forward earnings of the company.

Then you have the EPS or Earnings Per Share.

Let’s list the P/E ratios of the bank stocks again here: (for quick reference)

RY: 13.42

TD: 12.14

CIBC: 14.35

BMO: 12.91

BNS: 14.21

So, looking at the above P/E ratios, it seems like TD is the most undervalued stock and a better buy compared to the other Bank Stocks today. This might change tomorrow. Coz, P/E ratios depend on the stock price and earnings reported by the company.

Moreover, you cannot compare the financial sector or the Bank’s P/E to technology stocks such as Apple, Google or Microsoft which trades at multiple’s of 35X.

Last but not the least, always check out the quarterly and annual reports of the company you’re really interested in. Know the stocks in full before investing a single $1 into it. Do not day trade and burn your hands. Always Invest for the long term and in good quality stocks. Build a portfolio over time with good quality investments. You can thank me later for this.

Bank Stocks

Final Words

Like I said if you’re considering equities, Investing in Canadian bank stocks is always a safe and blue-chip investment.

All the bank stocks mentioned in this article have excellent growth over the years, be it for capital appreciation or dividend growth.

Always remember to invest in the blue chips for the long term.

Thanks for reading, please let me know your thoughts and comments below.

Best Canadian Bank Stocks