3 Top Bank Stocks to Buy in November

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) and other top bank stocks are still worth targeting as we move into November.

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Canadian markets have suffered from a spell of volatility due to several factors. Chief among them is the threat of rising interest rates. The Bank of Canada recently announced the end of its QE bond-buying program. This indicates a tightening cycle that will challenge the broader economy and the ongoing bull market. Today, I want to look at three bank stocks that still look like a solid buy today. Let’s jump in.

Here’s why TD is still my top bank stock pick today

TD Bank (TSX:TD)(NYSE:TD) is the second-largest financial institution in Canada. It also boasts the largest United States retail banking footprint among the Big Six. Shares of this top bank stock have climbed 24% in 2021 as of close on October 28. The stock has shot up 52% from the prior year. I’d suggested that investors scoop up TD Bank in April as the economy was on the rebound.

The bank unveiled its third-quarter 2021 results on August 26. In Q3 2021, TD Bank posted an adjusted net income of $3.62 billion or $1.96 on a diluted per share basis. Meanwhile, adjusted net income in the first nine months of 2021 rose to $10.7 billion or $5.83 per share – up from $6.99 billion or $3.76 per diluted share in the year-to-date period in 2020.

Shares of this bank stock possess a favourable price-to-earnings ratio of 10, putting it in better territory than its top peers. Moreover, it offers a quarterly dividend of $0.79 per share. That represents a 3.5% yield.

Don’t sleep on Canada’s top global bank this fall

Scotiabank (TSX:BNS)(NYSE:BNS) is another top Canadian bank stock with significant global reach. In this case, Scotiabank boasts a strong presence in Latin America. Shares of this bank stock have increased 21% in the year-to-date period. The stock is up 49% year over year.

On August 24, Scotiabank released its third-quarter 2021 results. Adjusted net income rose to $2.56 billion or $2.01 on a per-share basis compared to $1.30 billion or $1.04 on a per-share basis in the previous year. The Canadian banking retail segment delivered growth of 150% from the prior year to $1.08 billion. Meanwhile, its international banking segment rose to $493 million over $53 million in Q3 2020.

This bank stock last had a favourable P/E ratio of 11. It last paid out a quarterly dividend of $0.90 per share, which represents a solid 4.3% yield.

One more bank stock to snatch up right now

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth-largest of the Big Six bank stocks. Last month, I’d discussed why CIBC looked like it was on sale amid a bout of volatility. Shares of CIBC have climbed 5.7% month-over-month as of close on October 28. The stock has climbed 39% in the year-to-date period.

CIBC’s profit jumped 48% from the prior year to $1.73 billion. Like its peers, it was bolstered by a significant drop in provisions set aside for credit losses. Its core banking unit delivered profit growth of 40% to $642 million. Moreover, it returned to form on the housing front. Its mortgage book rose to $240 billion – up from $230 billion in the previous quarter.

Shares of this bank stock have a solid P/E ratio of 11. It offers a quarterly dividend of $1.46 per share. That represents a 3.8% yield.

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 Ambrose O’Callaghan owns shares of TORONTO-DOMINION BANK. The Motley Fool recommends BANK OF NOVA SCOTIA.

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