CIBC (TSX:CM) Just Made a $10M Bet on Artificial Intelligence

Aspiring Canadian retirees should invest in artificial intelligence through bank stocks like Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM).

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Artificial intelligence (AI) is more than just a concept. It’s a reality. Moreover, Canadians are in the perfect position to profit from this emerging technology.

AI has the potential to increase human productivity by over 40%. Although not well known, Canada is leading the way in AI research and development. Toronto boasts the highest number of AI start-ups globally, and more researchers and students of deep learning live in Montreal than anywhere else in the world.

CIBC (TSX:CM)(NYSE:CM) just made a $10 million bet on a U.S.-based AI start-up, Stratifyd. CIBC’s investment in Stratifyd expands Canada’s AI investment footprint in the United States.

Through CIBC, Canadian investors have a tremendous indirect opportunity to invest retirement funds in artificial intelligence safely – and receive high dividend yields.


Stratifyd’s software can analyze and visualize data from across multiple channels, including star ratings, surveys, marketplace reviews, and call center transcripts.

The user-friendly software allows every employee, even those without formal training in AI, to easily contribute actionable insights to the organization.

Named the second fastest-growth company in the U.S. state of North Carolina, CIBC’s $10 million loan will fuel Stratifyd’s continued growth. Artificial intelligence for customer analytics is the number one profit opportunity in this new technology sector.

Cutting-edge Canadians should look for opportunities to grow their wealth with investments in companies like Stratifyd.


Canadian savers should seriously add CIBC to their savings plans. The bank just announced a dividend increase to $1.44 per share for the quarter ended June 30.

Not only is CIBC well-known worldwide as one of the most financially solvent banking institutions, but CIBC has also reliably paid investors dividends for over 150 years since 1868.

At the current share price of $109.35, the dividend yield stands at a fantastic 5.27% annually. With low-interest rate policies taking up space in the headlines, safe dividend stocks like CIBC are a Canadian saver’s best friend. Aspiring retirees should invest long-term savings in high-yield securities like CIBC stock.

There may be some liquidity risk involved with CIBC, even corporations with long histories like CIBC experience dives. CIBC hit a high of over $100 per share in 2007, right before the global financial crisis. By February 2009, it hit a low of just over $43 before beginning the long five-year climb back up to $100 again.

CIBC shareholders essentially experienced two years of consecutive market value losses, and they had to wait for five years until the fall of 2014 to fully rebound. Thus, while your investment is safe over a seven-year horizon, it may not be an appropriate asset to achieve short-term savings goals.

If something were to happen tomorrow to send the stock tumbling, you might need to wait seven years to access your full initial balance.

Foolish takeaway

Artificial intelligence is on its way to completely changing our society and how we analyze and interpret data. Buying shares in an AI corporation is like investing in the personal computer in the 1970s.

Every Canadian should have some of their long-term savings devoted to technology, preferably securities that offer regular interest payments like dividends.

CIBC is excellent because it not only invests in AI through financing, but it’s also a government-insured enterprise that pays dependable high-dividends to shareholders regularly.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Debra Ray has no position in any of the stocks mentioned.

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