Quote:
Originally Posted by CaptainYooh
All Canadian bank and REIT dividends look huge right now but it's unrealistic to expect them to be paid-out at that levels. I've no doubts, they will have to be adjusted down significantly to historically supportable levels (3-4% for Tier-1 banks and 4-8% for REITs).
|
The Reits will just borrow at historically low rates as required to maintain dividends. The banks will maintain profits, maybe even save on staffing through this. The government is just printing money to keep things moving. Unless inflation on the back end of this increase default rate and puts pressure on there balance sheets they will be fine. If they aren’t fine the governments will bail them out. So big 5 Canadian banks will all hit dividends.