This Unsung Bank Stock Offers a Rock Solid Dividend

By Baystreet Stocks to Watch

National Bank of Canada (TSX:NA) stock has increased 1.6% in 2018 as of early afternoon trading on July 31. Shares have climbed 13.5% year over year. National Bank is set to release its third-quarter results in late August. In the second quarter National Bank hiked its quarterly dividend to $0.62 per share which represents a 3.7% dividend yield.

Canadian banks have performed well in the first two quarters of 2018.

There are a number of challenges ahead with trade anxiety and rate tightening giving investors pause. Several of the top banks have warned that mortgage loan growth will slow significantly in the second half of the year, but another interest rate hike in July should boost margins.

National Bank saw net income and diluted earnings per share rise 13% in the second quarter. All of its segments posted solid growth in the quarter, with Wealth Management reporting a 23% increase in net income to $119 million.

National Bank stock reached an all-time high of $65.68 in January.

Canadian stocks have rebounded from the late January and early February selloff but have experienced a stagnation that calls back to the same period in 2017. Historically, the TSX has performed well in the second half of years, and the third quarter earnings period last year sparked a surge for Canadian bank stocks and the index as a whole.

National Bank stock comes in at a fair value ahead of its Q3 earnings. It is a worthy addition for investors seeking income today.

This article provided by NewsEdge.