You Can Profit When The Big Banks Make Huge Profits

Own Bank Stocks and Receive Dividends

Whenever the big banks report their quarterly results and report huge profits, some individuals and organizations complain the banks are making too much money. I disagree.

How much money is too much money?

Who decides how much money is too much money? Do you want your bank to lose money and go bankrupt?

I want my bank, where I keep my money, to be very successful and to make large profits. It gives me a warm fuzzy feeling, and a sense of security knowing that my money is safe.

Anyone can share in the banks’ success by buying bank stocks and receiving dividends on those stocks.

The large Canadian banks are good long-term investments.

The Toronto-Dominion Bank (TD Bank) is Canada’s largest bank. Canada’s second-largest bank is the Royal Bank of Canada (RBC), and it owns 144,511,689 of TD Bank’s stock. Since TD Bank pays annual dividends of $3.16, RBC receives an annual dividend income of $456,656,937.

All of us can share in the profits by owning the stocks of profitable banks.

Interestingly, the large Canadian banks own each other’s stocks. Here are a few examples:

TD Bank owns 19,693,568 shares in RBC;

RBC owns 112,650,900 shares in Bank of Nova Scotia (BNS);

TD Bank owns 22,763,588 shares in BNS;

RBC owns 57,879,647 shares in the Bank of Montreal (BMO); and

BNS owns 13,512,141 shares in BMO.

Do you think these banks know what they’re doing? I may never own millions of shares in one of these banks, but I can own some and share in their profits.

Here is the link to my article on high dividend stocks to consider for your portfolio.

References: Click here for the information on TD Bank shares. Click here for the information on stock ownership by Canadian banks.

Disclaimer: This article is for informational purposes only and should not be considered Financial or Legal Advice. Consult a financial professional before making any significant financial decisions.