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Originally Posted by ah123
For all you money experts out there...how are the Cdn banks looking? Is it worth picking up stock in BMO or Scotiabank?
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I'd definitely take a look at the Big 6 Canadian Banks. All are trading near 52 week lows with high dividends due to the large drop in share prices. The last bank to cut its dividend was National Bank in the early 1990's but these are turbulent times.
If you pick a BMO, BNS or RY I'd buy 25% or 33% now, then buy the remaining 3 quarters or 2 thirds over the next few months/quarters. Don't buy shares all at once as it's tough to time a bottom and who knows how the news of the US banks will affect Canada though the bank fundamentals are stronger this side of the border. I'd also be prepared to hold these for a min of 5 years as any gains could take a while to happen in this turbulent market so make sure this isn't money you'll need in the short term. Patience is key.