2 Top Bank Stocks to Buy Now

cash money dividendsWritten by Stephanie Bedard-(*2*), MBA at The Motley Fool CanadaA good way to increase your monetary power is to add an additional stream of earnings within the type of dividend-paying shares. Dividends are a type of passive earnings, as you don’t have to put in any effort to earn them. There are many Canadian dividend shares to select from, however some are higher than others. Bank shares are a superb alternative.You can by no means go improper with Canadian financial institution shares, as they’re fairly secure they usually have tonnes of money on the steadiness sheet. Among huge Canadian financial institution shares, Bank of Montreal (TSX:BMO)(NYSE:BMO) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD) look significantly fascinating proper now. Indeed, these banks have been paying dividends for years and have low payout ratios. Plus, they’re low-cost, as they’ve P/E ratios underneath 15. Let’s take a look at these dividend shares in additional element.Bank of MontrealBMO is the fourth-largest financial institution in Canada. Like different huge Canadian banks, it’s a very secure enterprise.BMO at present pays a dividend yield of round 3.3%. At the identical time, its P/E ratio is barely 12, which is fairly conservative. BMO has been paying a dividend for greater than 25 years, and its payout ratio is 40%. Its monetary outcomes are additionally actually good.Indeed, BMO posted a powerful efficiency within the third quarter of 2021. The financial institution exceeded revenue estimates thanks to improved loan-loss provisions.Net earnings for the quarter ended July 31 reached $2.28 billion, up 85% from $1.23 billion a 12 months earlier.BMO adjusted earnings reached $2.29 billion ($3.44 per share) within the third quarter of 2021 in contrast to adjusted earnings of $1.26 billion ($1.85 per share) within the quarter of the earlier fiscal 12 months.Capital Markets earnings reached $558 million — a rise of 31% over the identical quarter final 12 months, pushed by continued robust income efficiency.Analysts on common anticipated BMO to report adjusted earnings of $2.93 per share within the third quarter of 2021.Story continuesRevenue elevated 5.6% to $7.6 billion from $7.2 billion a 12 months earlier.TD BankTD Bank is the second-largest lender within the nation. It is increasing within the United States actually quick and past that. TD Bank has been paying a dividend for greater than 25 years. The dividend yield of this prime financial institution inventory is at present 3.8% and its P/E ratio is 9.7. TD Bank posted stable third-quarter outcomes. Quarterly revenue elevated and beat expectations, because the financial institution recovered credit score losses and earned increased revenues from its retail operations in Canada and the United States.Profit was $3.55 billion ($1.92 per diluted share) within the third quarter of 2021, up 57.7% from a revenue of $2.25 billion ($1.21 per share) within the third quarter of 2020. On an adjusted foundation, TD earned $1.96 per diluted share in its final quarter in contrast to $1.25 per diluted share within the earlier 12 months’s quarter. The consensus was for adjusted earnings of $1.90 per share.Revenue totalled $10.71 billion within the quarter ended July 31, up 0.4% from $10.67 billion a 12 months in the past. TD’s Canadian retail enterprise noticed internet earnings soar 68% 12 months over 12 months to $2.13 billion. Meanwhile, its U.S. retail operations gained $1.3 billion, up 92% from a 12 months in the past.The financial institution’s Wholesale Banking enterprise posted a 25% drop in internet earnings to $330 million. TD’s tier one capital ratio was 14.5% within the third quarter in contrast to 12.5% ​​within the prior-year quarter.The submit Passive Income: 2 Top Bank Stocks to Buy Now appeared first on The Motley Fool Canada.Free 5G inventory picks from The Motley FoolSpend money on 5G Stocks for the Long TermOur Stock Advisor Canada analysts have put collectively a particular report with 5 of our favourite 5G shares. Get the report at this time at no cost!Get Your Free Report!More studyingFool contributor Stephanie Bedard-(*2*) has no place in any of the shares talked about. The Motley Fool has no place in any of the shares talked about. 2021


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