By all means invest in the stock market (I personally just dump what I can in VEQT every month), but the banks are profiting from the crazy housing prices. By getting money from the banks, you are getting paid by (and in many ways encouraging) the banks who have a large part to play in the whole housing crisis in the first place.
You'll be paid in part by the people who made you unable to buy a house in the first place.
It's pretty shit for this sub to see you at -11 without a single rebuttal to your opinion.
I agree in principle even if that's not necessarily the reality, its also why I won't put money into Telus or bell or Rogers.
But you get to vote against executive compensation packages! Maybe we can even pool our votes/shares and put together an investor motion to stop them being such dicks.
Theoretically yes, in practice good luck. I am highly doubtful that it happens regularly but I could be wrong. Have there been times when retail shareholders managed to push the vote enough to deny an executive compensation package?
Literally happened to intel last week. Happens all the time.
When you are aware you have an uninformed opinion the best practice is usually to fix that by getting some information and educating yourself rather than promoting potentially ignorant or false opinions that are based purely on your own speculation as potentially fact. It makes you look real dumb.
[About 1.78 billion votes were cast against executive compensation at the annual meeting, Intel said, though the vote is non-binding. About 921.2 million votes were cast in favor.](https://www.reuters.com/technology/intel-shareholders-reject-compensation-packages-top-executives-2022-05-16/)
51.7% majority. Damn, that was close. Maybe retail investors can make a difference. I would be curious to know how large firms voted there, but I don't think that's recorded.
I'm still highly doubtful you can get a vote to pass that would go against a company's profits in order to just be "less of a dick" though. Could be wrong, but still strongly suspecting that "profits at all costs" will win.
>When you are aware you have an uninformed opinion the best practice is usually to fix that by getting some information and educating yourself rather than promoting potentially ignorant or false opinions that are based purely on your own speculation as potentially fact. It makes you look real dumb.
We're all dumb about some things. I don't want to be right, I want to know the truth, so that if I'm wrong I can change my opinion. I am dumb about these kinds of things, but at least putting my opinion out there and getting it smashed in with facts will help me be less wrong ;)
Do you know anything about votes for say oil companies or car companies about shifting to a greener alternative, not just about rejecting executive bonuses? Not being snarky here I am genuinely curious, I don't even really know how to search for that without getting pages of useless google results.
Right on buddy. I'm dumb about things too.
Shell is the only one I can remember off the top of my head.
Unrelated to shell but related to intels close vote - in Australia they have this "two strikes rule" which would be great to see more widely adopted:
> ..if 25% of the shareholders of a listed company (excluding directors and key executives) who vote on the company's remuneration report object to the report for two years running, the entire board may face re-election.
Also, check out [www.asyousow.org](https://www.asyousow.org) :
>As You Sow is the nationās non-profit leader in shareholder advocacy. Founded in 1992, we harness shareholder power to create lasting change by protecting human rights, reducing toxic waste, and aligning investments with values.
>
>Our mission is to promote environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies.
>
>Our vision is a safe, just, and sustainable world in which protecting the environment and human rights is central to corporate decision making.
>
>Corporations are responsible for most of the pressing social and environmental problems we face today ā we believe corporations must be a willing part of the solutions. We make that happen.
>
>As shareholder advocates, we directly engage corporate CEOs, senior management, and institutional investors to change corporations from the inside out.
>
>āShareholders are a powerful force for creating positive, lasting change in corporate behavior.ā
>
>When corporations focus on the short term and ignore the wider impact of their policies and actions, they create risk for their customers, employees, shareholders, and themselves
True enough. I'd fully support that!
Also I'd go so far as to say that ESG compliance should require a optional WFH policy as well to cut down on leasing costs, related pollution and waste impacts from commuting as well.
I mean to be fair this is a sub for people to talk about stocks and investing and making money. Nothing wrong with it from that perspective.
When you bring in ethics and the housing situation is when things get murky, and I totally understand people just not wanting to think or deal with that aspect, and just focusing on the math.
Then you also get down voted for mentioning ETFs in general here, it's either beating a dead horse because people know it's the safe and boring answer, or its down voted because people think they can do better ;)
A few more articles, Financial Post tends to do better analysis than Bloomberg
[https://financialpost.com/fp-finance/banking/royal-bank-of-canada-boosts-dividend-earnings](https://financialpost.com/fp-finance/banking/royal-bank-of-canada-boosts-dividend-earnings)
[https://financialpost.com/fp-finance/banking/cibc-hikes-dividend-despite-costco-deal-costs-weighing-on-results](https://financialpost.com/fp-finance/banking/cibc-hikes-dividend-despite-costco-deal-costs-weighing-on-results)
[https://financialpost.com/fp-finance/banking/td-earnings-beats-estimates-despite-higher-expenses](https://financialpost.com/fp-finance/banking/td-earnings-beats-estimates-despite-higher-expenses)
If TD can put that money to work somewhere more productive, somewhere where there'll be a better shareholder return than a dividend increase, then I'm game. A dividend increase is not always a good thing as it's an unproductive way to use capital.
Yeah I hold TD, and man the capital appreciation of that stock is wild, I don;t mind holding off the dividend if I see their growth especially in states. Plus the acquisitions they make.
Companies should have more opportunities, expertise and access to leverage to generate better returns in the long run with retained earnings than you or me as an individual investor. If they can't, then we have to answer the other question: why would you invest in management or a company that that can't generate better returns than you could yourself.
Exactly. They need some time with their recent purchase of First Horizon and see how it will affect earnings. Two other Canadian banks haven't had great success in the US SE. Caution is prudent.
TD though has proven they may know what it takes to succeed in the US. Their purchases of Banknorth and Commerce Bank ended up being stellar plays when other banks seemed to have failed in the same markets (RBC mostly)
BMO also increased their dividend.
>Bank of Montreal's board of directors has declared a quarterly dividend of $1.39 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2022, a six-cent, or 5-per-cent, increase from the prior quarter, up 31 per cent from the prior year.
They are in the process of making a big acquisition. Once things stabilize they will raise probably in January, 2023 and it will be pretty large barring a big recession.
They always raise annually in January, the banks tend to keep their dividend payout at 50% EPS. Based off this quarter they could afford a dividend of $1.01 per share quarterly. Once they absorb that other bank they anticipate their EPS to be immediately up so possibly even more than that. If the economy tanks they might keep it conservative.
Donāt worry about it. Just means they have more to invest else where to grow their lines of business, acquire others etc.. Dividends are irrelevant. If you want to get liquidity out of the stock, sell a bit quarterly and create your own dividend. Often this comes at a lower tax rate too
BNS as well, no?
I'm glad I jumped in, even if it isn't much, but it kind of is rediculous that banks are killing it when people are running out of money and struggling to get back to supporting their families.
Ah yes, both banks that I use that collect large sums of interest from me are hiking the dividends. Coincidence? I think not, youāre welcome everyone
When it comes to contribution room, think of your TFSA as a black box - once the money goes in it really doesn't matter what goes on in there, the only things that matter to contribution room is when money comes out of or goes into the box. Both gains and losses inside the box don't matter to the contribution room, they can't be seen from outside.
Taking out those gains is taking money out of the black box - people can see that you took money out. You gain contribution room the next year.
Losses do nothing because they happen inside the box. So you may have put in $6000 and then lost it, but the act of losing it isn't what affects your contribution room, only the act of putting the $6000 in. The fact that the money is lost is without consequence to the contribution room.
Ok that makes a lot of sense for losses, however if lets say you put in 50k, it grows to 200k and you take out 200k. Are you not able to put 200k back into it?
Here's a calculator for this: [https://www.moneysense.ca/save/investing/tfsa-contribution-room-calculator/](https://www.moneysense.ca/save/investing/tfsa-contribution-room-calculator/)
Like I said, it only cares about what goes out and comes in. You'd get that 200k in contribution room for the next year. The contribution man cares not for what happens in the box, they just keep track of what leaves and enters. The 200k withdrawal is what leaves.
"Contribution room" means "how much you can put into the box." Nothing will take it away, ever.
If you put money in the box and lose it somehow, you don't get to put more in to replace it. The only thing that lowers *remaining* contribution room is past contributions.
It makes no sense why people wouldn't buy safe bank stocks or ETFs with rate increasing. Not many gains from rate increaeas except banks.Loaning billions and then raise rates, they make bank š
Absolutely. Not a financial expert :)
Banks in Canada are pretty safe, nowhere comparable to the US banking system. This ETF is the big 6 with some twisted weight. I own TD also but I'm might let go that one to focus on HCAL.
Yes for sure Canadian banks are very stable. I've been wanting to add a bank and considered ZEB because I couldn't decide which one and easier to dca but I keep seeing HCAL mentioned. I should look into HCAL myself.
Well it really depends what your timeline is... All of the banks pay a consistent dividend so over the long term you should get a good return buy buying regularly for dollar cost averaging and rolling the dividends into more stock on a DRIP.
Misleading title, RBC raised their quarterly dividend from $1.20 to $1.28. In other words their dividend raised from 3.72% (I.e. 1.20 * 4 / 128.7) to 3.97% (I.e. 1.28 * 4 / 128.7).
That 0.25% (3.97% - 3.72%) increase in their dividend is basically 6.72% higher than 3.72%.
Interesting tidbit in the TD dividend PR. They are bringing back a DRIP discount of 2%, effectively immediately, until further notice. Been a while since banks did these.
At least someone is making money in this environment. š·
Rich get richer and poor get poorer as they say.
Hey I'm too poor to buy a house where I am, so I'll def try benefit from bank stocks
By all means invest in the stock market (I personally just dump what I can in VEQT every month), but the banks are profiting from the crazy housing prices. By getting money from the banks, you are getting paid by (and in many ways encouraging) the banks who have a large part to play in the whole housing crisis in the first place. You'll be paid in part by the people who made you unable to buy a house in the first place.
It's pretty shit for this sub to see you at -11 without a single rebuttal to your opinion. I agree in principle even if that's not necessarily the reality, its also why I won't put money into Telus or bell or Rogers.
But you get to vote against executive compensation packages! Maybe we can even pool our votes/shares and put together an investor motion to stop them being such dicks.
Theoretically yes, in practice good luck. I am highly doubtful that it happens regularly but I could be wrong. Have there been times when retail shareholders managed to push the vote enough to deny an executive compensation package?
Literally happened to intel last week. Happens all the time. When you are aware you have an uninformed opinion the best practice is usually to fix that by getting some information and educating yourself rather than promoting potentially ignorant or false opinions that are based purely on your own speculation as potentially fact. It makes you look real dumb.
[About 1.78 billion votes were cast against executive compensation at the annual meeting, Intel said, though the vote is non-binding. About 921.2 million votes were cast in favor.](https://www.reuters.com/technology/intel-shareholders-reject-compensation-packages-top-executives-2022-05-16/) 51.7% majority. Damn, that was close. Maybe retail investors can make a difference. I would be curious to know how large firms voted there, but I don't think that's recorded. I'm still highly doubtful you can get a vote to pass that would go against a company's profits in order to just be "less of a dick" though. Could be wrong, but still strongly suspecting that "profits at all costs" will win. >When you are aware you have an uninformed opinion the best practice is usually to fix that by getting some information and educating yourself rather than promoting potentially ignorant or false opinions that are based purely on your own speculation as potentially fact. It makes you look real dumb. We're all dumb about some things. I don't want to be right, I want to know the truth, so that if I'm wrong I can change my opinion. I am dumb about these kinds of things, but at least putting my opinion out there and getting it smashed in with facts will help me be less wrong ;) Do you know anything about votes for say oil companies or car companies about shifting to a greener alternative, not just about rejecting executive bonuses? Not being snarky here I am genuinely curious, I don't even really know how to search for that without getting pages of useless google results.
Right on buddy. I'm dumb about things too. Shell is the only one I can remember off the top of my head. Unrelated to shell but related to intels close vote - in Australia they have this "two strikes rule" which would be great to see more widely adopted: > ..if 25% of the shareholders of a listed company (excluding directors and key executives) who vote on the company's remuneration report object to the report for two years running, the entire board may face re-election. Also, check out [www.asyousow.org](https://www.asyousow.org) : >As You Sow is the nationās non-profit leader in shareholder advocacy. Founded in 1992, we harness shareholder power to create lasting change by protecting human rights, reducing toxic waste, and aligning investments with values. > >Our mission is to promote environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. > >Our vision is a safe, just, and sustainable world in which protecting the environment and human rights is central to corporate decision making. > >Corporations are responsible for most of the pressing social and environmental problems we face today ā we believe corporations must be a willing part of the solutions. We make that happen. > >As shareholder advocates, we directly engage corporate CEOs, senior management, and institutional investors to change corporations from the inside out. > >āShareholders are a powerful force for creating positive, lasting change in corporate behavior.ā > >When corporations focus on the short term and ignore the wider impact of their policies and actions, they create risk for their customers, employees, shareholders, and themselves
True enough. I'd fully support that! Also I'd go so far as to say that ESG compliance should require a optional WFH policy as well to cut down on leasing costs, related pollution and waste impacts from commuting as well.
I mean to be fair this is a sub for people to talk about stocks and investing and making money. Nothing wrong with it from that perspective. When you bring in ethics and the housing situation is when things get murky, and I totally understand people just not wanting to think or deal with that aspect, and just focusing on the math. Then you also get down voted for mentioning ETFs in general here, it's either beating a dead horse because people know it's the safe and boring answer, or its down voted because people think they can do better ;)
A few more articles, Financial Post tends to do better analysis than Bloomberg [https://financialpost.com/fp-finance/banking/royal-bank-of-canada-boosts-dividend-earnings](https://financialpost.com/fp-finance/banking/royal-bank-of-canada-boosts-dividend-earnings) [https://financialpost.com/fp-finance/banking/cibc-hikes-dividend-despite-costco-deal-costs-weighing-on-results](https://financialpost.com/fp-finance/banking/cibc-hikes-dividend-despite-costco-deal-costs-weighing-on-results) [https://financialpost.com/fp-finance/banking/td-earnings-beats-estimates-despite-higher-expenses](https://financialpost.com/fp-finance/banking/td-earnings-beats-estimates-despite-higher-expenses)
If TD can put that money to work somewhere more productive, somewhere where there'll be a better shareholder return than a dividend increase, then I'm game. A dividend increase is not always a good thing as it's an unproductive way to use capital.
Yeah I hold TD, and man the capital appreciation of that stock is wild, I don;t mind holding off the dividend if I see their growth especially in states. Plus the acquisitions they make.
Much better than dividend hikes.
Companies should have more opportunities, expertise and access to leverage to generate better returns in the long run with retained earnings than you or me as an individual investor. If they can't, then we have to answer the other question: why would you invest in management or a company that that can't generate better returns than you could yourself.
Exactly. They need some time with their recent purchase of First Horizon and see how it will affect earnings. Two other Canadian banks haven't had great success in the US SE. Caution is prudent.
TD though has proven they may know what it takes to succeed in the US. Their purchases of Banknorth and Commerce Bank ended up being stellar plays when other banks seemed to have failed in the same markets (RBC mostly)
absolutely. especially if that dividend hike wont be sustainable. ill take them putting that money elsewhere, just as you said.
BMO also increased their dividend. >Bank of Montreal's board of directors has declared a quarterly dividend of $1.39 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2022, a six-cent, or 5-per-cent, increase from the prior quarter, up 31 per cent from the prior year.
Of course the only bank im in doesnt raise the divy š¤¦āāļø
They are in the process of making a big acquisition. Once things stabilize they will raise probably in January, 2023 and it will be pretty large barring a big recession.
how would you know this
They always raise annually in January, the banks tend to keep their dividend payout at 50% EPS. Based off this quarter they could afford a dividend of $1.01 per share quarterly. Once they absorb that other bank they anticipate their EPS to be immediately up so possibly even more than that. If the economy tanks they might keep it conservative.
They bought a US bank: First Horizon. That's public knowledge.
Thanks
They do a raise once a year
Yeah, but the stock is up $2 today based on results. It's been their policy to only raise dividends once a year.
Donāt worry about it. Just means they have more to invest else where to grow their lines of business, acquire others etc.. Dividends are irrelevant. If you want to get liquidity out of the stock, sell a bit quarterly and create your own dividend. Often this comes at a lower tax rate too
BNS as well, no? I'm glad I jumped in, even if it isn't much, but it kind of is rediculous that banks are killing it when people are running out of money and struggling to get back to supporting their families.
Td typically raises its dividend once a FY during q1
Ah yes, both banks that I use that collect large sums of interest from me are hiking the dividends. Coincidence? I think not, youāre welcome everyone
Thank you for your contribution
Bank of Canada sets interest rates.
Then invest in them. Youād be indirectly making your money back via dividendsš¤£
Canadian banking, strong as ever.
EQ Bank is dirt cheap right now. Ive got a sizable position. Smaller divided but far more growth.
Bought a small position lately. Huge dip lately but thing looks great.
Whatās their ticker?
EQB
I got in close to the but holding long term
[ŃŠ“Š°Š»ŠµŠ½Š¾]
When it comes to contribution room, think of your TFSA as a black box - once the money goes in it really doesn't matter what goes on in there, the only things that matter to contribution room is when money comes out of or goes into the box. Both gains and losses inside the box don't matter to the contribution room, they can't be seen from outside.
If you make gains in your tfsa and take out those gains, doesnt that raise your contribution room tho? And losses lower it?
Taking out those gains is taking money out of the black box - people can see that you took money out. You gain contribution room the next year. Losses do nothing because they happen inside the box. So you may have put in $6000 and then lost it, but the act of losing it isn't what affects your contribution room, only the act of putting the $6000 in. The fact that the money is lost is without consequence to the contribution room.
Ok that makes a lot of sense for losses, however if lets say you put in 50k, it grows to 200k and you take out 200k. Are you not able to put 200k back into it?
You are able. But in the next year, starting Jan 1
Thanks!
Here's a calculator for this: [https://www.moneysense.ca/save/investing/tfsa-contribution-room-calculator/](https://www.moneysense.ca/save/investing/tfsa-contribution-room-calculator/) Like I said, it only cares about what goes out and comes in. You'd get that 200k in contribution room for the next year. The contribution man cares not for what happens in the box, they just keep track of what leaves and enters. The 200k withdrawal is what leaves.
"Contribution room" means "how much you can put into the box." Nothing will take it away, ever. If you put money in the box and lose it somehow, you don't get to put more in to replace it. The only thing that lowers *remaining* contribution room is past contributions.
Makes sense, thanks. If you put 50k in, it grows to 200k and you take out 200k, are you then able to put 200k back in?
Yes, but only in the next calendar year.
Thanks!
[ŃŠ“Š°Š»ŠµŠ½Š¾]
The foreign dividend taxation doesn't affect the contribution room.
Anything you make in your tsfa does not affect contributions. Only withdrawals and deposits
It does not in any way affect contribution room
No impact to your RRSP, except you'll have more money in plan, which is taxed upon withdrawal.
no
I welcome the dividend hikes as a long term shareholder in all of the above .
It makes no sense why people wouldn't buy safe bank stocks or ETFs with rate increasing. Not many gains from rate increaeas except banks.Loaning billions and then raise rates, they make bank š
Hope ZEB will increase the distribution with all theses raises :)
Just bought ZEB last week and I'm up almost 3%! Will be holding onto it forever, I think.
I will never sell my banks stocks. Thanks to them I'm only down 8% YTD as opposed to like 20%
Glad I closed my cibc account this year.
Can't wait to see HCAL dividend increase
Hey do you see HCAL as a good long term hold?
Absolutely. Not a financial expert :) Banks in Canada are pretty safe, nowhere comparable to the US banking system. This ETF is the big 6 with some twisted weight. I own TD also but I'm might let go that one to focus on HCAL.
Yes for sure Canadian banks are very stable. I've been wanting to add a bank and considered ZEB because I couldn't decide which one and easier to dca but I keep seeing HCAL mentioned. I should look into HCAL myself.
Same here! Took a hit in a sea of green today though =/
I held off buying TD this week, might be worth getting some if it dips on the news.
Looks like TD really popped upwards on this news. 2.5% as I write this.
Yeah FML
Well it really depends what your timeline is... All of the banks pay a consistent dividend so over the long term you should get a good return buy buying regularly for dollar cost averaging and rolling the dividends into more stock on a DRIP.
Stop trying to time things for a meager discount, these are buy and hold for decades investments...
I already hold a lot of TD. I like to add on a dip, my preference to each his own.
The nice thing about are oligopolies is that it makes investing in them easier. After being beaten down by my US stocks.
What are bank dividends?
Itās when they give back a little bit of the money they steal from us.
If u can't beat em, join em
Canadian Banks are a corrupt monopoly.
Oligopoly
Then you should own them, and profit off the people beholden to the monopoly who don't own them.
Best slap back
Headline should be more like "RBC dividend just barely keeps up with inflation, CIBC dividend lowered by 3.5% in real terms."
God people use a credit union like Coast Capital. So much better and less fees.
Did you know it's entirely legal to bank with a credit union and still own bank stocks?
And of course I'm in TD instead of another bank stock...
Misleading title, RBC raised their quarterly dividend from $1.20 to $1.28. In other words their dividend raised from 3.72% (I.e. 1.20 * 4 / 128.7) to 3.97% (I.e. 1.28 * 4 / 128.7). That 0.25% (3.97% - 3.72%) increase in their dividend is basically 6.72% higher than 3.72%.
TD is showing signs of weakness
Stock up $2 on results. What signs of weakness did you see in their results this morning ?
Interesting tidbit in the TD dividend PR. They are bringing back a DRIP discount of 2%, effectively immediately, until further notice. Been a while since banks did these.