Recently, U.S. bank stocks raised their dividend payments after passing stress tests, indicating that their financials were looking strong. But that doesn’t mean that you should rush out to invest in them, as it’s not hard to find better yields out there; top Canadian bank stocks may still make for the better overall investments.
JPMorgan Chase & Co (NYSE:JPM), for instance, raised its dividend by more than 7%, to $1.50 per share. But even with the increase, its yield is still around just 2%. While that’s higher than the S&P 500 average of 1.2%, it may not be a compelling enough reason for dividend investors to load up on it. Bank of America (NYSE:BAC) also bumped up its dividend by 8% to $0.28 per share. But even with that increase, its yield is approximately 2.3%.
Those are decent payouts, but if you’re looking to make the most of your money and accumulate plenty of dividend income, then Canadian stocks can make for better investment options. Toronto-Dominion Bank (TSX:TD)(NYSE:TD) yields 4.2% while Royal Bank (TSX:RY)(NYSE:RY) pays 3.4%. And one of the highest-yielding options comes from Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), which yields a staggering 5.8%.
These top Canadian bank stocks have excellent track records for paying and raising dividends over the years, and can be solid income-generating investments to hang on to. There may, of course, be some volatility in the near future depending on what happens with tariffs, but if you’re holding on for the long haul, you’ll likely benefit from both rising prices and dividend income.
