Thursday, December 20, 2018

Recent Buy - Canadian Imperial Bank of Commerce (CM.TO)


Tuesday December 11, I bought 15 shares of Canadian Imperial Bank of Commerce at CA$ 105.98 per share plus commission.


Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to individual, small business, commercial, corporate, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Small Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. It offers chequing, savings, tax free savings, and business accounts; loans, lines of credit, student lines of credit, and business and agriculture loans; fixed and variable rate, first time home buyer, and commercial mortgages; rapid and franchise financing services; and home power plan solutions. The company also provides prepaid, credit, and commercial cards; and guaranteed investment certificates, investment banking, mutual funds, structured notes, education RESPs, and disability RDSPs, as well as portfolio, business, and investment solutions. In addition, it offers government supported programs; travel and creditor insurance products; specialty services, such as established business, agriculture, and indigenous banking services, as well as banking services for professionals; and custody, corporate trust, and transfer agency services. Further, the company provides student, youth, senior, newcomers, and foreign workers banking offers, as well as banking bundles. Additionally, it offers overdraft protection, switch kit, retirement planning, precious metal purchasing, cash management, merchant, trade finance, correspondent banking, community commitment, asset management, self-directed brokerage, and online foreign exchange services, as well as mobile, online, and ATM services. The company also operates an advice center. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.



CM is a member of Canadian Dividend All-Star list with a 7 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 6.2, 8.6, 6.9 and 4.6. (Canadian Dividend All-Star List) Canadian Imperial Bank of Commerce Ltd now pays dividends of CA$ 1.36 per share normally in January, April, Juni and October.




Details of my purchase:




Some ratings for CM.TO:

    Yahoo: Mean Recommendation 2.6, 1y Target Est CA$ 128.07
    Reuters: Mean Rating 3.10
    Morningstar:  (****)


At today's exchange rate, that purchase 15 shares of CM will increase € 39.59 (CA$ 60.79) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 13,820.00. With purchase price CA$ 105.98 plus commission (CA$ 3.50) my starting yield on cost is 5.12%. After this acquisition, CM's weight of my portfolio is about 0.25% and its share of future annual dividend income is approximately 0.29%. My purpose is slowly to continue to build up CM's share of my portfolio, if the price remains at these levels.


Click here to see my portfolio.

Full Disclosure: Long CM

Thanks for stopping by!


4 comments:

  1. Hawk -

    Love CM and own almost 90 shares of the bank beast! Congrats and you'll be enjoying those dividends.

    -Lanny

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  2. I really like the financial sector at current prices. Thanks for bringing CM to my radar. This bank looks like a great deal.
    Cheers

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  3. CM - Congratulations Hawk! Great purchase. I don't own as many shares as Lanny, but they are certainly on my radar now and I may add some more before their looming ex-dividend date. Enjoy the extra income.

    Bert

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  4. nice hawk. Those canadian banks seem to be on sale now.

    great buy!

    ReplyDelete