Canadian bank stocks are recovering as interest rates stabilize and the economy continues to be resilient. These changes are already proving to help banks rise beyond the pressure built up recently. So, I think now may be the time for investors to start considering Canadian Imperial Bank Of Commerce (TSX:CM), in part due to the company's current 4.4% dividend yield.

Here's more on why CIBC could be a decent bet and continue to rise, as it has in recent months.

Dividend supported by a strong business model

CIBC is one of Canada's so-called "big five" banks and one of the lenders that is most exposed to the Canadian economy. The company's share of lending in the Canadian market is notable, relative to its size. Accordingly, expectations around how the Canadian economy will perform moving forward are integral to how this bank performs over a given period of time.

With the Bank of Canada cutting interest rates ahead of its peers, the market appears to be pricing in a soft or no landing scenario right now. That's good for this bank, which serves around 11 million customers in Canada and around the world. Expectations that the lender's wealth management and capital markets business could pick up would also provide a boon, but much of its recent rise likely has to do with boosted expectations around how retail banking activity may pick up moving forward.

Strong earnings growth

CIBC has reported exceptional earnings growth in recent quarters. The company's historical earnings per share growth rate sits at around 5.9%, but analysts are now pricing in EPS growth of 7.5% for this year, which is quite the leap for the top Canadian bank.

Again, these expectations appear to be tied to more bullish forecasts of where the housing market will ultimately end up in Canada, and there are still risks to be considered here. But a look at the bank's asset utilization ratio suggests that from a fundamental perspective, CIBC continues to perform well.

Is CIBC stock a buy?

In my view, dividend investors looking for a relatively stable 4.4% yield and some steady long-term capital appreciation can certainly consider CIBC stock right now. I've been hard on this particular bank in the past, simply due to its relative lack of diversification relative to its large-cap peers. However, for those bullish on the strength of the Canadian economy over the long term, this is the bank stock to buy to play this trend.