Topic: How To Invest

Dividend Advisor Hotline – Friday, March 03, 2017

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $119.20, Toronto symbol CM, will raise its quarterly dividend by 2.4%, to $1.27 a share from $1.24. The new annual rate of $5.08 yields a high 4.3%. In June 2016, CIBC agreed to buy Chicago-based PrivateBancorp Inc. (Nasdaq symbol PVTB). Under the terms of the deal, CIBC will pay $3.8 billion U.S. (40% in cash and 60% in stock). To put that in context, the bank’s market cap (the total value of all outstanding shares) is $44.8 billion (Canadian). The bank still intends to acquire Chicago-based PrivateBancorp Inc. (Nasdaq symbol PVTB). Under the terms of the deal, CIBC will pay $3.8 billion U.S. (40% in cash and 60% in stock). However, PrivateBancorp stock has jumped nearly 60% since the deal was announced and its shares trade above CIBC’s bid. The firm’s board of directors has now decided to postpone a shareholder vote on CIBC’s offer. In its fiscal 2017 first quarter, ended January 31, 2017, the bank’s earnings rose…