The Globe and Mail columnist Rob Carrick notes that investing in the financial sector will help pay for at least part of the expenses related to our checking accounts, mutual fund fees and insurance (through dividends). It is another way of saying that it is better to have money on the bank than in it. The financial sector is well represented in the TSE and here are some well-known banks and their current dividend yields:
Royal Bank of Canada (TSX: RY) - 2.88%
Bank of Nova Scotia (TSX: BNS) - 3.13%
Toronto-Dominion Bank (TSX: TD) - 2.75%
CIBC (TSX: CM) - 3.45%
Bank of Montreal (TSX: BMO) - 3.14%
National Bank (TSX: NA) - 3.00%
Laurentian Bank (TSX: LB) - 4.28%
Also, rich dividends can be found in mutual fund companies and life insurers (like Rob points out in his column), P&C insurers (the nice folks who provide us with auto and home insurance products) and even the Toronto Stock Exchange (TSX: X).
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1 response so far ↓
1 Jose Anes // Jun 3, 2005 at 12:09 am
Love the idea. It is coincidence that I recently posted an article about investing on banks as opposed to placing the money on a CD (as long as you don’t need the money for about 5 years). I did concentrated on USA Banks, but apparently this idea is valid across all of America.
Money and Investing
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