Moomoo CA wrote a post · Jun 25 05:30

Dividend countdown: Don’t miss bank payout and high-yield stocks 😎

Hi mooers!

With the coming summer also comes the dividend dates of major Canadian banks.

$NATIONAL BANK OF CANADA (NA.R.CA)$ kicked off the bank dividend payment wave yesterday. Shareholders registered by Tuesday, June 25th will receive a dividend of $0.8067 per share on Wednesday, July 31st. This new dividend offers a yield of 4.17% and marks an increase from the previous dividend of $0.78.

Following the suit will be:

$Canadian Imperial Bank of Commerce (CM.CA)$ June 28th

$Bank of Nova Scotia (BNS.CA)$ July 3rd

$The Toronto-Dominion Bank (TD.CA)$ July 10th

$Royal Bank of Canada (RY.CA)$ July 25th

$Bank of Montreal (BMO.CA)$ July 30th

These banks will also release their dividends respectively on different rate. If you want to stay tuned on their updates of dividends, click here!

Dividend countdown: Don’t miss bank payout and high-yield stocks 😎

The Bank of Canada's interest rate cut could revitalize high-yield stocks

Over the past two years, the rising interest rates have caused high-yield stock prices to remain sluggish as investors turned to other income-generating investments such as bonds and Guaranteed Investment Certificates (GICs).

With the anticipated 100bps interest rate cut by the Bank of Canada in 2024, trillions of Canadian dollars are sitting in cash within retirement accounts.

As interest rates decline, this creates a strong incentive for investors to seek other investments that can generate substantial income, particularly dividend stocks.

If you are interested in high dividend stocks and their potential money-making opportunities, please check out here!

More on Canada interest rate

Economists predict that if inflation continues to cool, the Bank of Canada (BoC) may reduce interest rates again in July. Inflation is expected to have slowed further in May, reflecting progress after the BoC's first rate cut in four years.

Statistics Canada’s report on Tuesday will provide the first inflation data since the BoC lowered its key rate by a quarter-point to 4.75% on June 5. This move marked a significant shift in the BoC's battle against inflation, which peaked at 8.1% in mid-2022. The BoC was the first G7 central bank to cut rates, followed by the European Central Bank.

Governor Tiff Macklem expressed confidence that inflation is nearing the 2% target, based on various indicators. Economists believe the upcoming inflation data will significantly impact future rate cut decisions.

TD's director of economics, James Orlando, suggests that

The next two inflation reports could justify another rate cut on July 24. He mentioned that a poor inflation reading could deter the BoC from further cuts.

Continue reading on this topic!

Want to learn more about bank stocks and high dividend stocks? Click here>>