Topic: How To Invest

Dividend Advisor Hotline – Friday, March 4, 2022

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $159.56, Toronto symbol CM, remains a buy. CIBC last raised your quarterly dividend with the January 2022 payment. Investors now receive $1.61 a share, up 10.3% from $1.46. The new annual rate of $6.44 yields a high 4.0%. As well, it plans to repurchase up to 2.2% of its common shares over the next year. The bank also plans to split its outstanding common shares on a 2-for-1 basis in May 2022. That will improve the liquidity in trading for those shares. Meantime, CIBC continues to see improving demand for new loans as the economy recovers from the COVID-19 shutdowns. It’s also cutting its loan-loss provisions. In its fiscal 2022 first quarter, ended January 31, 2022, it set aside just $75 million to cover future loan losses, down 49.0% from $147 million a year earlier. As a result, CIBC’s earnings before unusual items gained 15.5%, to $1.89 billion from $1.64 billion. Due to more shares outstanding, earnings per share rose…