October flew by it seems and now it is already time to consider which stocks will make the short list for screening in November. After a bumpy September, October seemed to offer a small recovery in terms of North American markets. Here is how these major markets fared since the end of August: (DJIA 3.6%, S&P 500 1.7%, NASDAQ 2.1% and the S&P/TSX -5.7%). I have a long-term horizon and plan to hold my stocks through significant volatility. The way I see it, downturns are excellent buying opportunities.
I plan on purchasing a new holding in the Canadian financial sector, or adding to my existing position in RY.
Eventually, I plan on holding Canadian, U.S. and international equities in my portfolio. Given the loonie is still trading at 10 year lows against the greenback, I doubt I will be purchasing USD denominated stocks this month.
Here are my Canadian financial shortlist options for consideration this month: TD, BNS, RY, and BMO. Before making my purchase, I will screen these shortlist contenders against several other equities in the sector to find the best fit.
The Toronto-Dominion Bank (TD) provides financial products and services. The bank operates through three business segments: Canadian Retail, U.S. Retail, and Wholesale Banking.
|Div Growth Rate||6.57%||2014/TTM|
The Bank of Nova Scotia (BNS) operates as a diversified financial services institution that provides a wide range of financial products and services to retail, commercial and corporate customers.
|Div Growth Rate||14.56%||2014/TTM|
Royal Bank of Canada (RY) engages in the provision of diversified financial services. It operates through the following business segments: Personal and Commercial Banking, Wealth Management, Investor and Treasury Services, Capital Markets, and Insurance.
|Div Growth Rate||3.46%||2014/TTM|
Bank of Montreal (BMO) provides banking and financial services to individuals and institutions. BMO operates through three segments: Personal and Commercial Banking, Wealth Management & BMO Capital Markets.
|Div Growth Rate||1.92%||2014/TTM|
Even though they aren’t under consideration this month, here are the US/International financial stocks currently on my foundation watch list: HSBC and WFC.
I look forward to hearing your ideas on dividend stocks in the financial sector.
Disclosure: long RY, no current holdings in any of the other stocks mentioned.