In this article, we discuss 5 Canadian stocks to buy amid rate hikes. If you want to see more stocks in this selection, check out 10 Canadian Stocks to Buy Amid Rate Hikes.
5. The Bank of Nova Scotia (NYSE:BNS)
Number of Hedge Fund Holders: 18
The Bank of Nova Scotia (NYSE:BNS) was founded in 1832 and is headquartered in Halifax, Canada. The bank operates in four segments – Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets, offering its services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean, and Central America.
On May 25, the company announced its Q1 2022 financial results, posting earnings per share of $1.70, topping market consensus estimates by $0.17. The $6.20 billion revenue also surpassed Street estimates by $62.20 million. Higher rates helped the stock considerably in Q1.
The Bank of Nova Scotia (NYSE:BNS) on May 27 declared a C$1.03 per share quarterly dividend, a 3% increase from its last dividend of C$1.00. The dividend is payable on July 27, to shareholders of the company on July 5. The company delivers a dividend yield of 5.03% as of June 10.
Canaccord analyst Scott Chan on May 26 maintained a Buy rating on The Bank of Nova Scotia (NYSE:BNS) and raised the firm’s price target on the stock to C$92 from C$89.
According to Insider Monkey’s data, 18 hedge funds were bullish on The Bank of Nova Scotia (NYSE:BNS) at the end of March 2022, up from 15 funds in the preceding quarter. Joseph Sirdevan’s Galibier Capital Management is one of the leading shareholders of the company, with 641,501 shares worth $46 million.
4. CI Financial Corp. (NYSE:CIXX)
Number of Hedge Fund Holders: 12
CI Financial Corp. (NYSE:CIXX) is a Toronto-based asset management holding company focused on equity, fixed income, and alternative investment portfolios. On May 20, CI Financial Corp. (NYSE:CIXX) reported Canadian wealth management assets of C$77.5 billion, and US wealth management assets of C$148.7 billion. The total assets amounted to C$354.6 billion, up compared to C$281.6 billion in the same month last year. CI Financial Corp. (NYSE:CIXX) also completed multiple acquisitions by the end of April 2022.
On February 25, CI Financial Corp. (NYSE:CIXX) reported a $0.18 per share quarterly dividend, a 26.8% increase from its previous dividend of $0.14. The dividend is payable on July 15, to shareholders of record on June 30. As of June 10, the company’s dividend yield stands at 4.82%.
On May 16, Canaccord analyst Scott Chan reiterated a Buy rating on CI Financial Corp. (NYSE:CIXX) but lowered the price target on the shares to C$23.50 from C$27.50.
According to Insider Monkey’s database, 12 hedge funds reported long positions in CI Financial Corp. (NYSE:CIXX) at the end of March 2022, with combined stakes of $123.6 million. Arnaud Ajdler’s Engine Capital is the largest shareholder of the company, with 1.95 million shares worth $311 million.
3. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 19
Manulife Financial Corporation (NYSE:MFC) was incorporated in 1887 and is headquartered in Toronto, Canada. The company provides financial products and services in Asia, Canada, and the United States, operating through Wealth and Asset Management Businesses, Insurance and Annuity Products, and Corporate and Other segments.
On May 11, Manulife Financial Corporation (NYSE:MFC) declared a C$0.33 per share quarterly dividend, in line with previous. The dividend is distributable on June 20, to shareholders of record on May 25. Manulife Financial Corporation (NYSE:MFC)’s dividend yield on June 10 came in at 5.77%.
TD Securities analyst Mario Mendonca maintained an Action List Buy rating on Manulife Financial Corporation (NYSE:MFC) but lowered the firm’s price target on the shares to C$34 from C$37 on May 13.
Among the hedge funds tracked by Insider Monkey, 19 funds were long Manulife Financial Corporation (NYSE:MFC) at the end of Q1, up from 15 funds in the last quarter. Noam Gottesman’s GLG Partners is the biggest position holder in the company, with approximately 10 million shares worth $211.20 million.
2. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 21
Royal Bank of Canada (NYSE:RY) is a Toronto-based financial services company that operates through Personal & Commercial Banking, Wealth Management, Insurance, Investor & Treasury Services, and Capital Markets segments. The company’s Q1 EPS of $2.34 beat market estimates by $0.24.
On May 26, Royal Bank of Canada (NYSE:RY) announced a C$1.28 per share quarterly dividend, a 6.7% increase from its prior dividend of C$1.20. The dividend is distributable on August 24, to shareholders of record on July 26. The company’s dividend yield on June 10 stood at 3.98%.
Argus analyst Stephen Biggar on June 6 raised the price target on Royal Bank of Canada (NYSE:RY) to $125 from $121 and kept a Buy rating on the shares after its Q2 results that reflected higher net interest income for the fourth consecutive quarter. According to the analyst, Royal Bank of Canada (NYSE:RY) remains in a solid competitive position, with a rising market share in the Canadian banking space and a strong wealth management franchise. He added that he sees continued positive comparisons owing to robust loan volumes and rising interest rates.
According to Insider Monkey’s data, 21 hedge funds were bullish on Royal Bank of Canada (NYSE:RY) at the end of Q1, up from 15 funds in the prior quarter. Rajiv Jain’s GQG Partners is the leading shareholder of the company, with about 5.8 million shares worth $638.4 million.
1. Sun Life Financial Inc. (NYSE:SLF)
Number of Hedge Fund Holders: 10
Sun Life Financial Inc. (NYSE:SLF) was founded in 1871 and is headquartered in Toronto, Canada. The company offers insurance, wealth, and asset management services to individuals and enterprise customers worldwide. Sun Life Financial Inc. (NYSE:SLF) declared on May 11 a C$0.69 per share quarterly dividend, a 4.5% increase from its prior dividend of C$0.66. The dividend is payable on June 30, to shareholders of record on June 1. The company delivers a dividend yield of 4.51% as of June 10.
On June 7, Barclays analyst John Aiken reinstated coverage of Sun Life Financial Inc. (NYSE:SLF) with an Overweight rating and a C$71 price target. The company’s “surprisingly weaker year-to-date performance reflects overblown concerns on the macro outlook”, the analyst told investors. The analyst believes Sun Life Financial Inc. (NYSE:SLF)’s business will “remain resilient even in a more difficult macro outlook”.
Among the hedge funds tracked by Insider Monkey, 10 funds reported long positions in Sun Life Financial Inc. (NYSE:SLF) at the end of March 2022, compared to 11 funds in the last quarter. Jim Simons’ Renaissance Technologies is one of the largest shareholders of the company, with 621,600 shares worth $34.70 million.
You can also take a look at 10 Best Recession Stocks To Buy and 10 Best Undervalued Dividend Stocks To Buy.
