Bank Dividends in Canada Could Rise 25% When Restrictions Lifted
- Hamilton Capital says OSFI should allow increases this quarter
- Firm says banks could hike payouts more to slow capital growth
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Canada’s largest banks could raise their dividends as much as 25% once regulators allow them to increase their payouts, according to an investment firm that focuses on financial stocks.
The dividend increase of 20% to 25% could happen even if the banks’ earnings growth stalls, Toronto-based Hamilton Capital Partners said in a note Tuesday. The hikes could be even larger if bank executives want to slow the growth in their capital levels, the firm said.