Dividend Comparison – Financial Sector

Hey all! I decided to review my holdings in the financial sector and compare them to the rest of the competitors in the sector. The dividend comparisons as listed below gives me a wide picture of the relative value of each company. I use this as a starting point to find value in the sector and drill down from there to find the one to invest in.

US banks

To start off, comparison in the US financial sector has some very wide ranging numbers due to the 2008 crisis. Dividend yields range from 0.08 to 2.8% and there are some dismal numbers when you look at the dividend growth rates over the past 5 years.

Company Name Ticker Quote P/E Yield Payout Ratio 5-yr DGR
Bank of America BAC $13.28 42.67 0.30% 13% -56.47%
Wells Fargo WFC $42.83 12.13 2.80% 26% -4.40%
JPMorgan Chase JPM $54.70 9.77 2.78% 21% -3.38%
Citigroup C $49.52 17.80 0.08% 1% -70.26%
US Bancorp USB $37.05 12.80 2.48% 27% -13.42%
PNC Financial PNC $76.35 13.57 2.31% 28% -8.45%

Canadian banks

Canadian banks look much healthier with most of them on par with each other. All banks have a healthy yield north of 3.5% and all payout ratios in their 40s.

Company Name Ticker Quote P/E Yield Payout Ratio 5-yr DGR
Bank of Montreal BMO $62.02 10.41 4.77% 48% 0.71%
The Bank of Nova Scotia BNS $55.56 10.39 4.32% 43% 4.47%
CIBC CM $74.35 9.24 5.16% 46% 1.67%
National Bank NA $74.41 8.62 4.68% 41% 6.18%
Royal Bank of Canada RY $61.16 11.44 4.12% 45% 4.13%
Toronto Dominion TD $84.19 11.88 3.85% 43% 6.38%

My portfolio holdings of WFC, BNS and FIE.A (a Canadian Financial ETF) have performed well and am happy with the state of affairs. I am considering adding some more financial sector stocks sometime in the future depending on a few things including – opportunities (if and when there is a pullback), rebalancing my portfolio etc. My current weighting in the financial sector is about 10% and am considering some rebalancing at the end of the year.

Disclosure: I own WFC, BNS, FIE.A.

Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.

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