This is dividend week...
One of my favorite play in the dividend arena is Laurentian Bank for many reasons.
1) To the opposite of the first 3 majors canadian banks, Laurentian Bank is a lot smaller and a lot easier to expand. Doing banking business almost exclusively in the province of Quebec, they could expand and grow rapidly and agressively at least in the Toronto area without investing a lot where other Canadian banks would have to merge or go outside Canada.
2) They did made 2 major acquisitions since last year (AGF trust and MRS acquisition from Mackenzie Trust) and by doing so, increased their share of the mutual funds investments in Canada and especially in Quebec.
3) They have also increased their dividend 4 times during the last 24 months and their results are well over analysts estimations. From 0,36 in september 2010 to 0,47 in August 2012. This is a 33% dividend increase.
So LB is one of my favorite because it is offering a great dividend AND a major share value increase potential.
LB shares have increased by close to 12% recently and i would wait a bit for the next dip around 43$ or better. The shares are highly volatile due to the very low number of shares on the market. So be patient.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
One of my favorite play in the dividend arena is Laurentian Bank for many reasons.
1) To the opposite of the first 3 majors canadian banks, Laurentian Bank is a lot smaller and a lot easier to expand. Doing banking business almost exclusively in the province of Quebec, they could expand and grow rapidly and agressively at least in the Toronto area without investing a lot where other Canadian banks would have to merge or go outside Canada.
2) They did made 2 major acquisitions since last year (AGF trust and MRS acquisition from Mackenzie Trust) and by doing so, increased their share of the mutual funds investments in Canada and especially in Quebec.
3) They have also increased their dividend 4 times during the last 24 months and their results are well over analysts estimations. From 0,36 in september 2010 to 0,47 in August 2012. This is a 33% dividend increase.
So LB is one of my favorite because it is offering a great dividend AND a major share value increase potential.
LB shares have increased by close to 12% recently and i would wait a bit for the next dip around 43$ or better. The shares are highly volatile due to the very low number of shares on the market. So be patient.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
Aucun commentaire:
Publier un commentaire