Yes, Canadian banks have historically fallen during downturns. That’s remained true for Canadian Imperial Bank of Commerce, which is currently down by 22 per cent in the last year.
However, Canadian banks, including CIBC, have provisions for loan losses. These come into play right now, when Canadians take out fewer loans as interest rates continue to rise.Article contentWhat’s more, CIBC has been expanding rapidly, going through an overhaul of its business to gain and retain far more clients. The $52.25-billion company operates mainly in retail and business banking, as well as wealth management and capital markets.
However, that’s not the case for safe sectors such as healthcare. That’s why NorthWest REIT is an option. It provides diversified income for investors, as it operates healthcare properties around the world. This includes everything from hospitals to office buildings, with the company now boasting a market capitalization close to $2 billion.
The thing is, NorthWest REIT is quite new. So it doesn’t have the history of coming back after recessions that other companies might have. Shares are down 38 per cent in the last year, and 11 per cent year-to-date. However, its properties have a 97 per cent occupancy rate and an average lease agreement of 14 years, plus the current annual dividend yield of 9.48 per cent is pretty enticing. What’s more, their dividend comes out every month.Article content