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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Watch live: Ontario Premier Doug Ford makes an announcement – CTV Toronto
Ontario Premier Doug Ford said he’s still pushing to “knock down” the 14-day quarantine for travellers returning into Canada from overseas.
Ford made the comment on Wednesday afternoon after being asked whether border restrictions between Canada and the United States should be tightened given the escalating number of COVID-19 cases in both countries.
In response to the question, Ford said he still pushing to replace the quarantine with a rapid COVID-19 testing program, similar to what Alberta implemented earlier this year.
Under the plan, international travellers receive a COVID-19 test upon entering Canada before going into quarantine. If the test comes back negative, those travellers are allowed to leave quarantine but will have to take another test six or seven days after their initial arrival.
“We’re working with the federal government right now at Toronto Pearson to reduce the downtime once you come back,” Ford said. “You have to quarantine for 14-days, we want to knock that down.”
“I’m really pushing it because if you can land and you can get tested right away and then you get tested, I think it’s five to seven days later, and they both come out negative, you should be able to go on your way.”
Ford said he is expecting an answer later Wednesday afternoon on the status of the pilot project.
Ford went on to say that he believes the federal government needs to “step it up” when it comes to travellers returning in to Canada and at the very least take people’s temperatures.
“Don’t just let them walk off and hop in a taxi and away they go,” Ford said.
He also said he believes that some people are not adhering the quarantine rules when arriving back in Canada.
Feds plan to provide Canadians with tools to fight coronavirus vaccine misinformation – Global News
Speaking to reporters at the 2020 Canadian Immunization Conference on Wednesday, Dr. Theresa Tam, Canada’s chief public health officer, said the webinars will include a broad range of topics, including Health Canada regulatory perspectives, the different types of vaccines that will be available to Canadians, how to run immunization clinics as well as guidance for use from the National Advisory Committee on Immunization.
“Because of the social media and its Internet age, we’ve got even more of a challenge on our hands than anyone else in tackling pandemics of the past,” said Tam, adding that it was important Canadians understood how vaccines are developed.
“The regulatory process is rigorous and (the federal government) would only provide vaccines that have gone through safety evaluations and efficacy evaluations.”
An Ipsos poll conducted exclusively for Global News found a majority of Canadians surveyed, 59 per cent, said they would still support for mandatory COVID-19 vaccines — but more than 70 per cent said they would feel nervous taking a vaccine that went through such quick development.
Tam said the webinars will seek to dispel some of those fears, and explain how scientists were able to compress years worth of vaccine research into what she described as an “incredible global collaboration that has resulted in vaccines being available essentially within the year of the start of a pandemic.”
U.K. becomes first country to approve Pfizer’s COVID-19 vaccine
The top health official did not explicitly say when the webinars would be rolling out, but said to “expect the first webinars to be delivered very shortly.”
Tam’s announcement comes as Health Canada reviews multiple vaccine candidates, including Pfizer and BioNtech’s, which became the world’s first vaccine to receive approval after it was authorized by British health officials earlier on Wednesday.
The federal government has so far secured a minimum of 20 million doses from Pfizer and BioNtech, with the option to secure millions more if they’re approved.
According to Tam, Canadians can expect to see the first shipments of the vaccine roll out early next year, adding that front-line workers, high-risk groups like seniors and those in more isolated Indigenous communities will be considered for prioritization.
“As we roll out a vaccine, we have to take into account who is most at risk — at risk of exposure of severe outcomes and ensuring that these populations have priority access,” she said.
“Vaccine developers in phase three clinical trials are including some of these key populations.”
© 2020 Global News, a division of Corus Entertainment Inc.
Are you worried that people in other countries might get a COVID-19 vaccine first? – Castanet.net
A new poll suggests most Canadians aren’t currently worried that people in other countries might get a COVID-19 vaccine first.
Thirty-seven per cent of respondents to a survey conducted by Léger and the Association for Canadian Studies say they are very concerned that Canada may not receive doses of a new COVID vaccine as early as the United States.
“That’s not necessarily low, but I think most pundits would have expected this number to be much higher,” said Léger executive vice-president Christian Bourque.
Meanwhile, 48 per cent say they are not concerned about getting a vaccine first and 10 per cent say they don’t care at all or are not planning to get vaccinated anyway.
Getting a vaccine before other countries doesn’t seem to be “a major (issue for the Liberal government), which is contrary to what we might have thought … when the prime minister actually said that we would not be the first ones to get doses,” Bourque said.
The amount of concern regarding getting a COVID-19 vaccine first varies along party lines, with 45 per cent of self-identified Conservative supporters saying they are very concerned that Canada may not receive doses of a new COVID vaccine at the same time as other countries. Only 38 per cent of Liberal supporters say they are concerned.
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Watch live: Ontario Premier Doug Ford makes an announcement – CTV Toronto
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