CIBC aims to lift its dividend in 2021

Article Excerpt

Due to the onset of the COVID-19 pandemic in March 2020, Canada’s banking regulator ordered lenders to suspend dividend increases and share buybacks. That let them conserve funds ahead of the anticipated jump in bad loans. Now that pandemic is easing, CIBC is in a strong position to resume regular dividend increases. The bank is also making acquisitions that cut its reliance on Canada. CANADIAN IMPERIAL BANK OF COMMERCE $144 is a buy. The bank (Toronto symbol CM; Income-Growth Portfolio, Finance sector; Shares outstanding: 450.1 million; Market cap: $64.8 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Highest; www.cibc.com) is the smallest of Canada’s Big Five banks by market cap. The bank gets 34% of its earnings from its Canadian personal and banking business, which operates more than 1,100 branches. CIBC’s other operating segments are Canadian Commercial Banking and Wealth Management (25%), U.S. Commercial Banking and Wealth Management (15%), and Capital Markets (26%). CIBC last raised its quarterly dividend with the April 2020 payment. Investors…