The S&P/TSX Composite Index shed 140 points on Wednesday, June 21. Some of the worst-performing sectors included energy, information technology, and health care. Today, I want to zero in on three financial stocks that have terrific dividend-growth streaks. Are these Dividend Aristocrats worth snatching up in the final weeks of June? Let’s dive in.
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This regional bank stock has achieved three decades of dividend growth
Canadian Western Bank (TSX: CWB) is an Edmonton-based company that provides personal and business banking products and services to a client base that is centered primarily on Western Canada. Shares of this financial stock have climbed 3.7% month over month as of close on June 21. That has pushed this regional bank stock into negative territory in the year-to-date period in 2023. Investors who want to see more of its recent performance can play with the interactive price chart below.
This bank released its second-quarter fiscal 2023 earnings on May 26. Adjusted net income fell 6% year over year to $71.6 million in the second quarter. However, adjusted net income rose 2% to $168 million in the first half of fiscal 2023. Canadian Western was hit by the reversal of a previously recognized impaired loan write off.
Shares of this financial stock currently possess a very favourable price-to-earnings (P/E) ratio of 7.2. Canadian Western Bank has delivered 31 consecutive years of dividend growth. The stock offers a quarterly dividend of $0.33 per share. That represents a strong 5.4% yield.
Scotiabank is a top financial stock that has earned its elite reputation
Scotiabank (TSX: BNS) is often called “The International Bank” among the Big Six Canadian banks because of its significant global reach, particularly in Latin America. This bank is also no slouch when it comes to its domestic presence. Its shares have dipped 1.6% so far in 2023. The financial stock has plunged 17% compared to the prior year.
In the second quarter of fiscal 2023, Scotiabank reported adjusted net income of $2.17 billion, or $1.70 per diluted share — down from $2.76 billion, or $2.18 per diluted share, in the second quarter of fiscal 2022. Meanwhile, adjusted net income in its International Banking segment climbed 13% from the previous year to $1.29 billion.
Scotiabank last had an attractive P/E ratio of 9.5. This top bank stock has delivered 12 straight years of dividend growth at the time of this writing. It offers a quarterly dividend of $1.06 per share, which represents a tasty 6.6% yield.
One more financial stock I’d target with an impressive dividend-growth streak
Intact Financial (TSX: IFC) is the third and final financial stock and Dividend Aristocrat that I’d target in the second half of June 2023. This Toronto-based company provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, and around the world. Shares of this financial stock have dropped 2.2% month over month as of early morning trading on June 22. Its shares are still up nearly 1% so far in 2023.
In the first quarter of 2023, Intact Financial reported that operating direct premiums written increased 4% year over year to $4.80 billion. Meanwhile, underwriting income climbed 15% to $613 million. Shares of this financial stock last had a favourable P/E ratio of 15. Intact Financial has achieved 18 straight years of dividend growth. It offers a quarterly dividend of $1.10 per share, representing a 2.2% yield.
