Tag Archives: Capital One

August’s Pick

For those of you who like variety, you’ll be happy with this month’s pick. The bottom line is Metlife Inc (NYSE: MET) again because it comes out with the top score, but we have a couple other options for you. Metlife is still trading nearly 25% off the 52-week high and pays a 3.7% dividend. Really, not much has changed since last month so we’re recommending them again. But we promised some variety… While not the top pick (nor our official recommendation) there are a couple of stocks that are worth taking a look at.

First, Canadian Imperial Bank of Commerce (TSE: CM, NYSE: CM). Canadian banks are strictly regulated and so make for very stable choices for investors. For example, here’s the performance of CIBC over the last 5 years. Notice the number of times they’ve raised their dividend! From $0.90 to $1.21 is a 34% increase in five years. Impressive. That dividend currently sits at 4.9% by the way.

CIBC

So why not recommend CIBC you might be wondering? One reason only: they are trading at just 5% below their 52-week high so Metlife offers greater potential for capital appreciation. CIBC would be a great purchase too, though, and that’s why we’re mentioning it.

Second, Capital One Financial (NYSE: COF). With a dividend of under 3.5% (currently, 2.5%), this company does not make our cut but I’m mentioning it here because it’s currently on sale and offers some capital appreciation potential. The stock is nearly 32% under its 52-week high which is a great discount for a solid company. With a P/E of only 9.16 and EPS of 6.87 it’s an attractive option. Our portfolio is a dividend income one so we wouldn’t purchase COF but you might want to allocate a small amount of your portfolio to it to reap the reward of the expected (inevitable?) price increase.

There you have it. Three interesting options for you this month. Happy investing!