Description: Shares of Canadian banks have been crushed along with the rest of the market, and that has sent their dividend yields up from the 3.5 per cent level to more than six per cent.
Source: BNNBloomberg.com – video report
Date: Mar 25, 2020
Questions for discussion:
- What is the connection between bank profits and dividend payouts?
- How do lower interest rates help banks and borrowers?
- Why is there confidence that banks will continue to pay out dividends?
- What would cause this confidence to erode?