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3 Top TSX Bank Stocks to Watch This Earnings Season – The Motley Fool Canada

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Earnings season for Canada’s top banks is very nearly upon us. So, should investors building positions in our biggest financial institutions load up on shares before the big event? Let’s weigh some of the pros and cons of three big TSX bank stocks reporting earnings around the end of the month.

Weighing three top Canadian bank stocks

Canadians with an interest in U.S. growth no doubt already own shares in TD Bank (TSX:TD)(NYSE:TD). The number two bank in the nation has been seeing big gains in American markets. So sturdy is this name that even amid volatility from the U.S. election, TD Bank has risen 11% in the last four weeks. Investors also look keen on TD Bank’s most recent quarter, with this top-tier banker up +5% in the last five days of trading.

A dividend 4.7% with a payout ratio of 59% combines a rich yield with the potential for income growth over the years. Value could be better for TD Bank, though with a P/B ratio of 1.4 times book, the long-term safety on offer seems worth the premium for this top TSX bank stock.

BMO also pays a 4.7% dividend yield, with very similar coverage. Its 1.2 P/B ratio denotes slightly better value for money, though. Throw in its strength in asset management and lower exposure to U.S. markets, and BMO is a strong alternative to TD Bank.

Scotiabank (TSX:BNS)(NYSE:BNS) is another key Canadian bank stock to watch this fall. With strong exposure to Latin American markets, Scotiabank has been one step behind its Big Five peers. This is because the coronavirus was generally a little later reaching that region. This means that Scotiabank is approximately one quarter behind other Bay Street bankers.

A 5.8% dividend yield with a 63% payout ratio makes Scotiabank a strong contender for long-term income investors. This TSX bank stock is valued similarly to its peers listed above. However, investors buying Canadian bank stocks for long-term income will have to weigh their bullishness on international growth before buying Scotiabank shares.

Uncertainty continues to cloud the markets

Indeed, the second wave has generally blindsided the markets, tainting the bullishness that saw momentum erupt in unlikely corners this year. While vaccine hopes are still coming thick and fast, an actual rollout could take some time. Between now and then, there is more than enough uncertainty to rock the markets.

Investors should keep an eye on the performance of TSX bank stocks, as coronavirus cases continue to rise in Western regions. From the public health crisis to consumer sentiment to economic instability, it’s a tough time to be in banking. For this reason, it may be better to wait until after earnings to buy shares.

In summary, investors watching these three stocks have some key dates to pencil into their calendars. Scotiabank is estimated to report earnings November 24. BMO will release its own report December 1. TD Bank is expected spill the beans December 3. A mixed round of earnings reports is likely, with destructive market forces still acting on share prices to create a period of ongoing volatility.

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Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

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Dow Average tops 30000, S&P 500 jumps to record – BNN

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The Dow Jones Industrial Average topped 30,000 for the first time and investors piled into risk assets as a series of market-friendly developments unleashed animal spirits on Wall Street.

The S&P 500 Index hit a record, spurred by the formal start of President-elect Joe Biden’s transition, news that all but removed the threat of a contested transfer of power. Investors also woke up with a clear sense of what Biden’s Treasury Department will have in policy preferences after he nominated Janet Yellen to the post. A third promising vaccine candidate added to the euphoria, boosting bets that the economy can soar next year.

The rotation into risk assets was widespread. Small caps in the Russell 2000 added another 1.9 per cent, pushing its November rally past 20 per cent. Tesla Inc. tacked on another 6.4 per cent and is now worth US$500 billion. Carnival Corp. jumped 11 per cent, Planet Fitness Inc. rose 8 per cent and MGM Resorts International added 9 per cent. Four stocks rose for every one that fell in the S&P 500, while only three Dow companies dropped. Bitcoin rose to a three-year high, topping US$19,000 as it closed in on a record.

The record runs come in the face of more troubling news on the virus front, with cases rising and more states enacting restrictions ahead of the Thanksgiving holiday. Wednesday will also bring a flood of economic indicators, from jobless claims to readings on consumer confidence and personal income. Trading volumes have been elevated in what is normally a calm week. More than 12 billion shares changed hands yesterday, up 75 per cent from the Monday before last year’s holiday.

“There’s nothing else to buy. People have this excess cash and they’re buying into the market and they’re chasing it,” Gene Goldman, chief investment officer at Cetera Financial Group, said. “People are ignoring the short term and just jumping in and buying. All the short terms news is being ignored for long term optimism.”

Energy companies in the S&P 500 surged 4 per cent on the back of oil’s advance past US$45 for the first time since March. The dollar weakened versus major peers and Treasuries slipped. Gold fell toward US$1,800 an ounce.

The digital currency climbs above US$19,000 for the first time since December 2017

As the S&P 500 pushes its November surge past 11 per cent, a growing chorus is saying the rally can persist. Even after the latest advance, four of the 11 S&P 500 groups remain at least 8 per cent below when the index set a record on Feb. 19. Expectation is mounting that as investors grow confident the vaccine will spark an economic boom, cash will continue flooding into the likes of banks, utilities and energy companies that have underperformed.

“Everybody’s just ecstatic with the vaccine news,” said Jerry Braakman, chief investment officer of First American Trust, in Santa Ana, California, which manages around US$2 billion. “We had to slug through the election results, there’s a sense of relief that we didn’t decay into anarchy. That was definitely holding back the economy. We know how well stock markets do with recovery and its vision ahead. That’s normally the best time for markets.”

The rotation has been on display all month. Energy shares have surged almost 40 per cent, while financial firms have rallied about 20 per cent. Treasury yields have advanced and gold has stumbled.

“Even though we’ve seen this pretty sharp rotation into cyclical stocks, we think this could go on for much longer given how unbalanced many investors’ portfolios are when it comes to growth and value,” said Bill Callahan, investment strategist at Schroders. “Prior to the vaccine announcement the market wasn’t sure how long we would be in this state of economic limbo, but with the vaccine announcement it really doesn’t matter if the vaccine is distributed in the second quarter or third quarter next year, there is a light at the end of the tunnel.”

Here are some key events coming up:

  • Minutes of the most recent Federal Open Market Committee meeting are due Wednesday.
  • U.S. jobless claims, GDP and personal spending data come Wednesday.
  • U.K. expected on Wednesday to deliver the government’s spending plans for next year.
  • Thursday sees a policy decision and briefing from the Bank of Korea.
  • U.S. celebrates the Thanksgiving holiday on Thursday.
  • The week ends with Black Friday, the traditional start of the U.S. holiday shopping season.

These are the main moves in markets:

Stocks

  • The S&P 500 Index rose 1.6 per cent as of 4 p.m. New York time.
  • The Dow average added 1.5 per cent to 30,045.
  • The Stoxx Europe 600 Index rose 0.9 per cent.
  • The MSCI Asia Pacific Index rose 0.9 per cent.
  • The MSCI Emerging Market Index was little changed.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4 per cent.
  • The euro climbed 0.4 per cent to US$1.1890.
  • The British pound gained 0.3 per cent to US$1.3358.
  • The Japanese yen was little changed at 104.54 per dollar.

Bonds

  • The yield on 10-year Treasuries jumped two basis points to 0.88 per cent.
  • The yield on two-year Treasuries increased less than one basis point to 0.16 per cent.
  • Germany’s 10-year yield gained three basis points to -0.56 per cent.
  • Japan’s 10-year yield climbed one basis point to 0.025 per cent.

Commodities

  • West Texas Intermediate crude surged 4.2 per cent to US$44.84 a barrel.
  • Brent crude climbed 3.9 per cent to US$47.87 a barrel.
  • Gold futures weakened 1.8 per cent to US$1,811 an ounce.

–With assistance from Todd White.

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1 Dividend King Stock That Will Rule Through a Market Crash – The Motley Fool Canada

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Crashes or corrections are normal occurrences in the stock market. After a rally, new drivers will cause turbulence and lead to a meltdown. The coronavirus outbreak is the latest event that hinders a bull run. However, the market still declines with or without a pandemic.

No one gets advance notice of the date, nature, and magnitude of the next dip. Income investors understand that a crash is inevitable. Panic is not their reaction, but it presents a challenge. You must pick a dividend stock that will endure or rule through a market crash. When a meltdown comes, your income stream will continue.

The TSX is back to pre-coronavirus levels

Investing in the stock market is like riding a roller coaster. Risks are unpleasant and ever-present. But historically, there are longer up moments than down periods. For instance, the S&P/TSX Composite Index has almost recovered entirely from its COVID low. Canada’s primary stock market is down by only 0.26% year to date.

The TSX sunk to a low of 11,228.50 on March 23, 2020. It breached the 17,000 level for the first time in nine months on November 20, 2020. The climb was steep, but it doesn’t mean the rally can sustain.

The clear and present danger

COVID-19 remains a clear and present danger. Due to its second wave, the country could return to lockdowns. Four provinces reported single-day highs last weekend. Prime Minister Justin Trudeau and public health officials urge Canadians to stay home to control the rise in cases.

Market volatility might heighten again in the last week of November, and the situation could deteriorate in December. If Canadians will not take greater care and follow health protocols, the new modelling of the federal government suggests there could be up to 20,000 daily cases next month.

Another crash could wipe out the gains of the TSX. Countries pin their hopes on a working COVID-19 vaccine. While there are two reported promising vaccines, returning to normalcy will not be instant.

Dividend king to own

A dividend king that stands out during a market crash is Enbridge (TSX:ENB)(NYSE:ENB). Investing in this energy stock is not 100% safe, although its regulated business can mitigate the risks and nip your worries in the bud.

Whether you’re chasing after dividend safety, a recurring income stream, or doubling your money in eight-and-a-half years, Enbridge is the dividend stock for you. The $77.58 billion energy infrastructure company pays a generous 8.46% dividend.

Enbridge generates revenues and derives 98% of its earnings from regulated businesses. Likewise, the majority of contracts with investment-grade customers are long term. The stock belongs to the highly volatile energy industry, but it transports, not produces, oil and distributes natural gas.

Prepare if you must

The next COVID-induced market crash could be worse than in March. Prepare if you must and initiate a position in Enbridge. Over the last 20 years, the total return is 728.38%. The company also raised dividends by 10% for three consecutive years. Take comfort in the low-risk business model. In a worst-case scenario, resiliency wins it for Enbridge investors.

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

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Families of 737 Max crash victims say plane is still unsafe, demand public inquiry – Canada News – Castanet.net

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Families of Canadians killed in the Boeing 737 Max crash say the plane remains unsafe and should stay grounded, despite being cleared for takeoff by regulators in the United States.

Paul Njoroge, whose wife, three children and died in the March 2019 crash of Ethiopian Airlines Flight 302, told the House of Commons transport committee Tuesday the aircraft is still “unstable.”

He and Chris Moore, whose daughter was among the 18 Canadian citizens who lost their lives, are calling for an independent inquiry into Transport Canada’s validation of Boeing’s best-selling airplane.

Moore says Canadians deserve to know why Transport Canada did not take action even after issuing a letter of concern before the crash about the Max plane’s anti-stall system, which safety regulators have said U.S. authorities failed to properly review.

Transport Canada said last week its recertification standards for the Max 8 diverge from those of U.S. regulators, including added procedures on the flight deck and differences in pilot training.

The Max planes have been grounded since March 2019 after the deadly crashes of a Lion Air flight near Jakarta in October 2018 and the Ethiopian Airlines flight less than five months later.

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