2 Bank Stocks to Buy for Yield and Dividend Growth

Dividend stocks have historically produced better returns over the long term than non-dividend-paying stocks, making them must-haves in all portfolios. With this in mind, let’s take a look at two banks with yields over 4% and track records of dividend growth that you could invest in today.

Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is Canada’s fifth-largest bank in terms of total assets with about $528.6 billion worth as of April 30, 2017. It provides a “full suite of financial products and services in Canada and around the world.”

CIBC pays a quarterly dividend of $1.27 per share, representing $5.08 per share annually, giving it a 4.8% yield. The company has also raised its annual dividend payment for six straight years, and its recent increases, including its 2.4% increase on February 23, have it positioned for 2017 to mark the seventh straight year with an increase.

National Bank of Canada

National Bank of Canada (TSX:NA) is Canada’s sixth-largest bank in terms of total assets with about $239 billion as of April 30, 2017. It provides “comprehensive financial services to consumers, small and medium-sized enterprises, and large corporation in its core market, while offering specialized services elsewhere in the world.”

National Bank pays a quarterly dividend of $0.58 per share, representing $2.32 per share annually, giving it a 4.3% yield. It has also raised its dividend for six straight years, and its recent increases, including its 3.6% increase on May 31, have it on pace for 2017 to mark the seventh straight year with an increase.