Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) has the makings of a positive year to go along with the company’s high dividend yield.
The Toronto-based bank has started the year off on the right foot, surging 1.6% by Jan. 19. CIBC has made a move that will pull at the heart strings; the bank announced that it will hire about 500 workers with disabilities in 2017. It is rare that disabled workers appear behind a counter, and this company is hoping to start a movement that will make it a commonplace situation.
The company made the decision following data on a survey commissioned by the bank that revealed that 37% of 1,002 citizens with disabilities were unemployed, while many others had to find a job that did not accurately represent their potential. About 1.8 million people in Ontario have disabilities. CIBC said it is a company that focuses on the strengths of its workers. This move is sure to improve the company’s public image.
The Canadian bank has also appeased customers that have family elsewhere in the world. A partnership has been formed between CIBC and UnionPay International to help clients send money to China in 24 hours with no remittance fees. Both companies acknowledge the importance of remittances that some families rely on.
In addition to offering no upfront fees, the bank will use competitive exchange rates and complete transactions within one business day. There will be a daily transfer limit of $9,999.99 for one bank account. These transactions are completed through the CIBC Global Money Transfer, which has been around since late 2015.
The service is used in more than 45 countries, including Pakistan, the U.S., Sri Lanka, and Vietnam. About one-fifth of Canada’s total global remittances go to China, amounting to US$4.2 billion in 2015. In total, the Asian country received about $431.6 billion in remittances sent from around the world.
Further expanding its international presence, CIBC will add operations in Dublin that will add employment opportunities. The bank hopes to have a larger international business in Ireland at a time when numerous financial firms in London are considering a move to Ireland following the U.K.’s decision to leave the European Union (E.U.) due to the fact that Great Britain could lose the right to conduct financial services across the E.U.
CIBC has more than 43,200 employees around the world with assets amounting to about $501.4 billion at the end of its financial year in October. The company has a market capitalization of $44.39 billion. In its most recent quarter, the company earned $1.91 per share — seven cents below the consensus estimate.
Two analysts rate CM stock a “Buy,” while the average rating for the stock sits at a “Hold” with a consensus price target of $109.62. The company will issue a quarterly dividend on January 27 amounting to $1.24 per share. This represents a $4.96 annualized dividend and a strong yield of 4.48%.
CIBC is making its clients happy with the expansion of its remittances program, while also approaching a new demographic that gives the bank a more humane element. With a high dividend yield and a growing workforce, the company is a stock worth investing in now.
