The Great White North: Not all banks are bad

In the past three years it would be tough to tell anyone to buy a bank stock given the turmoil in U.S. mortgages, European sovereign debt, and various different scandals. If you look to Canada it is a different story. Canadian banks not only weathered the financial storm, but have better capital structures to counteract the balance sheet problems many other banks are facing and most Canadian banks are trading a reasonable P/E ratio from 12-15x. When the global banking industry finally turns itself around, Canadian banks will be a safe bet for capital gains. The best part about Canadian banks for investors is their highly attractive dividend yield. Currently the big 6 Canadian banks are all yielding 3.5-5%, which is great for any buy and hold investor. The continually good earnings and stability of the Canadian banking sector make these picks great for a conservative investor worried about the recent global financial turmoil. Canada may be cold in the winter, but its banks stocks are sure warm to investors.