(Reuters) – Canadian banks, whose dividends yields climbed during the financial crisis, are again gaining favor with investors, as their pledges to maintain payouts gives them an edge over global counterparts who have shunned them.
FILE PHOTO: A man walks in front of buildings in the financial district in Toronto, January 28, 2013. REUTERS/Mark Blinch
Canadian banks are currently offering dividend yields of 5.7% versus U.S. banks’ 4.2% and European lenders’ 1.7%, according to Datastream.
(GRAPHIC: Canada bank yields outstrip European, American rivals – here)
Dividends are seen as evidence of good financial health and encourage loyalty from investors,