The S&P/TSX Composite Index has suffered three straight triple-digit point retreats to start this week. Canadian banks stocks, which make up a sizable weighting, have been hit hard by this pullback. Today I want to look at two of the top high-yield bank stocks that are worth considering as a value buy right now.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth-largest of the Big 6 Canadian banks. The bank released its first quarter 2020 results on February 26, which spurred the stock to rise 1% amidst a rough day for the broader market.
CIBC beat expectations in Q1 as profit rose 3% year-over-year to $1.2 billion. Adjusted earnings per share climbed 8% to $3.24.
The bank has pursued restructuring which will see it slash several thousand positions. CIBC hiked its quarterly dividend to $1.46 per share, which now represents a strong 5.4% yield. Shares also boast a favourable price-to-earnings ratio of 9.5 and a price-to-book value of 1.3.
Scotiabank (TSX:BNS)(NYSE:BNS) stock has dropped 2.8% over the past week. It released its Q1 2020 results on February 25. These also beat expectations as it posted a first-quarter profit of $2.33 billion – up from $2.25 billion in Q1 2019.
Scotiabank stock still offers a quarterly dividend of $0.90 per share. This represents a nice 4.9% yield. Though not the value play that CIBC is, Scotia also possesses a favourable P/E ratio of 10.6 and a P/B value of 1.4.
