Is National Bank of Canada Stock a Buy for Its 3.4% Dividend Yield?
Is National Bank of Canada Stock a Buy for Its 3.4% Dividend Yield?
National Bank expects interest rate cuts to offer relief for consumers and support business investment, both of which should lead to higher demand for loans across verticals. It ended Q3 with a CET1 (common equity Tier 1) ratio of 13.5%. The ratio is a percentage of a bank's risk-weighted assets and includes retained earnings and equity. A higher CET1 ratio is preferable as it measures the quality of the bank's capital. Basically, it ensures that a bank has enough capital to cover unexpected losses during turbulent economic periods.National Bank of Canada (TSX:NA) has created massive wealth for long-term shareholders. In the last 20 years, National Bank of Canada stock has returned 470%. Notably, if we adjust for dividend reinvestments, cumulative returns are much higher at 1,200%. Comparatively, the TSX Index has returned "just" 415% in dividend-adjusted gains in this period.
加拿大國家銀行（TSX：NA）爲長期股東創造了巨額財富。在過去的20年裏，加拿大國家銀行股票回報率達到了470%。值得注意的是，如果我們考慮分紅再投資，累計回報率會高得多，達到1,200%。相比之下，TSX指數在這段時間內「僅」以分紅調整收益的形式增長了415%。
Despite its outsized gains, the National Bank of Canada offers shareholders a forward dividend yield of 3.4%, given its annual payout of $4.40 per share. Let's see if this blue-chip dividend stock remains a top buy in October 2024.
儘管國家銀行取得了巨大的收益，但由於每股年度支付$4.40的前瞻性股利收益率爲3.4%，讓我們看看這家藍籌股分紅股是否仍然是2024年10月的首選購買對象。
Should you invest in National Bank of Canada stock?
您應該投資加拿大國家銀行股票嗎？
Valued at $45 billion by market cap, the National Bank of Canada is the sixth-largest bank in the country. In fiscal Q3 2024 (ended in July), National Bank reported adjusted earnings of $2.68 per share and a return on equity of 17%, reflecting its diversified earnings mix and strong credit profile. The Canadian banking giant's focus on execution has allowed it to balance revenue growth, costs, and credit performance in a complex environment.
加拿大國家銀行的市值爲450億美元，是該國第六大銀行。在2024年第三季度（截至7月底）中，加拿大國家銀行報告調整後的每股收益爲2.68美元，淨資產收益率爲17%，反映了其多樣化的收入結構和強勁的信貸概況。這家加拿大銀行巨頭專注於執行，使其能夠在複雜的環境中平衡營收增長、成本和信貸表現。
National Bank expects interest rate cuts to offer relief for consumers and support business investment, both of which should lead to higher demand for loans across verticals. It ended Q3 with a CET1 (common equity Tier 1) ratio of 13.5%. The ratio is a percentage of a bank's risk-weighted assets and includes retained earnings and equity. A higher CET1 ratio is preferable as it measures the quality of the bank's capital. Basically, it ensures that a bank has enough capital to cover unexpected losses during turbulent economic periods.
加拿大國家銀行預計利率下調將爲消費者提供救濟並支持企業投資，這兩者都應導致各個領域對貸款的需求增加。第三季度末，其CET1（普通股一級資本）比率爲13.5%。該比率是銀行風險加權資產的百分比，包括留存的收益和股本。較高的CET1比率更可取，因爲它衡量了銀行資本的質量。基本上，它確保銀行有足夠的資本來覆蓋經濟動盪期間的意外損失。
National Bank's strong balance sheet has allowed it to return capital to shareholders through consistent dividend hikes. In the last 27 years, it has raised its annual dividend payout from $0.30 per share to $4.40 per share. It ended Q3 with a dividend payout ratio of 41.2%, which is sustainable while providing enough room to target accretive acquisitions.
加拿大國家銀行強大的資產負債表使其能夠通過持續提高的股利回報資金給股東。在過去的27年裏，它將每股年度股利支付從0.30美元提高到4.40美元。第三季度末，其股利支付比率爲41.2%，這是可持續的，同時提供足夠的空間用於針對增值收購。
In June 2024, National Bank agreed to acquire Canadian Western Bank, which would help it accelerate its pan-Canadian growth. During the earnings call, National Bank's CEO, Laurent Ferreira, stated, "The combination will strengthen our Western presence and national reach and would also provide more choices to individuals, entrepreneurs, and businesses across the country."
2024年6月，加拿大國家銀行同意收購加拿大西部銀行，這將幫助加快其全國範圍的增長。在業績會上，加拿大國家銀行首席執行官勞倫特·費雷拉表示：「此舉將加強我們在西部地區的實力和全國覆蓋，也將向全國各地的個人、企業和企業提供更多選擇。」
Is National Bank stock overvalued?
national bank股票被高估了嗎？
In Q3 2024, National Bank increased:
2024年第三季度，national bank增加了：
- Personal & Commercial Banking sales by 7% due to growth in the personal mortgage segment.
- The commercial loan portfolio by 14% due to insured residential real estate momentum.
- Net interest income by 14% due to solid deposit flows in private banking and brokerage channels.
- 由於個人抵押貸款業務增長，個人及商業銀行業務銷售增長了7%。
- 由於受保險的住宅房地產市場勢頭，商業貸款組合增長了14%。
- 由於私人銀行業務和券商渠道的存款流入穩固，淨利息收入增長了14%。
Moreover, its fee-based revenue was up 12%, while transaction revenue grew by 21% year over year. Thus, National Bank continues to grow steadily despite a challenging macro environment.
此外，其基於收費的營業收入增長了12%，同比交易收入增長了21%。因此，儘管宏觀環境嚴峻，national bank仍然在穩步增長。
Analysts expect NA's adjusted earnings to grow from $9.6 per share in fiscal 2024 to $10.35 per share in 2025 and $10.7 per share in 2026. The TSX bank stock trades at 12 times forward earnings, which is reasonable given its earnings estimates and growing dividends.
分析師預計national bank的調整後每股收益將從2024財年的9.6美元增長到2025年的10.35美元，2026年的10.7美元。tsx銀行股的交易價格爲預期收益的12倍，考慮到其盈利預期和不斷增長的分紅，這是合理的。
National Bank remains a solid investment in October 2024 due to its entrenched position in Canada, the possibility of interest rate cuts, and attractive valuation.
由於national bank在加拿大的牢固地位、利率可能的下調以及有吸引力的估值，national bank在2024年10月仍然是一個堅實的投資。
譯文內容由第三人軟體翻譯。
