News Formal

CIBC sees US$160 billion piling back into Canadian dividend stocks

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 28 sec. here
  • 17 min. at publisher
  • 📊 Quality Score:
  • News: 66%
  • Publisher: 50%

Bonds News

Business,Canada,Top Canada

Investors are starting to plow funds into Toronto’s out-of-favor dividend-paying stocks after more than two years of antipathy, according to Canadian Imperial Bank of Commerce. It’s a trend that promises to grow as short-term interest rates in the country continue to be scaled back.

Don Nesbitt, senior portfolio manager at ZCM, joins BNN Bloomberg to share his top picks in large caps.

“A rotation back into high-yielding equities such as utilities, REITs and communications is just beginning,” Ian de Verteuil, an analyst at the bank, wrote in a research note Sunday. If rates continue to fall, his team expects Canadian investors to pour $220 billion of funds into dividend-paying stocks as they shift away from fixed income-linked products.

As Canadian rates peaked the net effect was that $200 billion of funds poured into fixed-income alternatives that traditionally would have bought high yielding equities.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Investors support proposed Canadian sustainability disclosures, but companies are pushing backEnergy and mining companies oppose mandatory disclosure, citing increased reporting burden and potential penalties risk
Source: globeandmail - 🏆 5. / 92 Read more »