Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is currently trading near its 52-week low and now may be a great time to load up on one of Canada’s top bank stocks.
With a dividend yield now at 5.6%, it’s an incredible payout for what’s a very safe stock to own for years. And what makes CIBC even more attractive of a buy is that the bank stock regularly increases its dividend payments over the years as well.
The company recently hiked its payouts from $1.44 every quarter to $1.46. While it’s not a big increase, CIBC normally increases its dividend payments multiple times per year.
For quarters ago, the company was paying $1.40 every three months and so that increase over a one-year span is 4.3%. With the payout already at 5.6%, any type of rate hike is going to make the stock look even better over the long term.
While there are some concerns that a slowdown in the economy may be inevitable, those are short-term problems that CIBC and other financial stocks will recover from. The stock is trading at a very cheap forward price-to-earnings of less than nine and its price-to-book multiple of under 1.50 makes it a very appealing purchase for value-oriented investors.
The company continued to show growth when it released its first-quarter results in February with reported net income rising 3% year over year. And with the company continuing to focus on cutting costs and laying off employees, its profits could get even stronger in future quarters.
