Comments on: Bank stocks

By: surjeet saraf

surjeet saraf — Sat, 27 Dec 2008 08:36:43 +0000

Please tell me how to buy DRIPS

By: igoilers

igoilers — Wed, 26 Nov 2008 23:10:38 +0000

Please remind me, how did the gov’t. bailout out the Canadian banks? I was under the understanding that they have made money available to them only if required. BMO’s profit is up 24% over the same period last year,either RBC or CIBC is stating that their profit for the quarter will be 1.1Billion. Were they bailed out or just offered liquidity if needed to be able to remain competitive based on foreign bank bailouts?

By: BarStoolAdvisor

BarStoolAdvisor — Fri, 07 Nov 2008 13:45:49 +0000

“The Finance Minister says the government will end up making money off of the transaction.”

Sorry Jim Flaherty, but I’m old enough to remember a certain politician (Jean Drapeau) who once said that the 1967 Olympics in Montreal could no more have a deficit than a man could have a baby.

Ask any Montrealer how long they ended up paying for that baby!

By: This and That: Stocks are cheap but could get even cheaper

This and That: Stocks are cheap but could get even cheaper — Fri, 07 Nov 2008 04:37:24 +0000

[...] Larry MacDonald notes that the average dividend yield on the Canadian banks exceeds the current yield on 10-year Canada bonds b…. [...]

By: Larry MacDonald

Larry MacDonald — Mon, 03 Nov 2008 17:49:15 +0000

Big Cajun
Dividend reinvesting is the way to go. Jeremy Siegel’s The Future for Investors presents the case persuasively. That’s how many stodgy blue chips beat growth stars over the decades since the 1950s.

By: Larry MacDonald

Larry MacDonald — Mon, 03 Nov 2008 17:43:45 +0000

oow
Great comment. You would think the banks shouldn’t get any government help until after they cut their dividends. I don’t mean to defend it but apparently, says the Finance Minister (if I recall correctly), the government will end up making money off of the transaction. If true, then taxpayers should be better off. But will it be true? Don’t know yet. But even if not, there may be a “market failure” or “negative externality” reationalization of the intervention in the minds of some. That is, letting the market get to the point where dividends are suspended could risk creating a scenario like the one unfolding in the U.S. plunging stock prices, possible insolvencies, and even more expensive bailouts.

By: Out of Work

Out of Work — Mon, 03 Nov 2008 16:36:38 +0000

I’m a little confused here. I paid over $16000 in taxes last year, yet I did not buy a home as I was not wealthy enough to purchase one. Financial crunch causes my place of employment to shut down, I’m even less wealthy now, but because my government is buying 25 billion of mortgages off those great banks your talking about, it appears I do own a mortgage. Looks like I won’t have enough spare cash to participate in this little dividen scheme you got going here.
If the situation is such you shouldn’t be getting any dividends from a financial system propped up by my tax dollar till I and many others have a job again.
Comment please Larry, or anybody else.

By: Big Cajun Man

Big Cajun Man — Sat, 01 Nov 2008 14:22:56 +0000

And the really nice thing is that if you are set up in a Dividend Reinvestment scheme, you end up buying a whole lot more of this good investment this time around too, as I did with TD!

C8j