Here's How Many Shares of Laurentian Bank to Own for $2,000 in Dividends and Hedge Market Swings

Here’s How Many Shares of Laurentian Bank to Own for $2,000 in Dividends and Hedge Market Swings

Laurentian Bank is certainly a top dividend stock, but it has even more to offer.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 18, 2025 4:20 pm EDT

It can be tricky navigating the ups and downs of the market. Sometimes, a steady stream of income can feel like a real win! Laurentian Bank of Canada (TSX: LB) offers a pretty tempting dividend yield. This makes it an interesting choice if you’re looking for regular returns. If your goal is to make $2,000 a year in dividends, let’s figure out how many shares you might need and why this bank could be a smart move for your investments.

Into the numbers

As of writing, Laurentian Bank’s stock is trading at around $26.81 per share. The dividend stock sends out a dividend payment quarterly, coming to $1.88 annually. When you look at the current stock price, this gives you a dividend yield of about 7.05%. That’s actually quite a bit higher than what you see with most of the big Canadian banks. So, how much would an investment take for $2,000 each year?

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
LB	$26.81	1,064	$1.88	$2,000.32	quarterly	$28,525.84

Now, as you can see, this would take a $28,525.84 investment. That’s not exactly cheap. So, before you go buying, is it worth the investment?

Digging deeper

Looking at how Laurentian Bank has been doing recently can give you more confidence in the ability to keep paying those dividends. In the first three months of 2025, the dividend stock reported a net income of $38.6 million and diluted earnings per share (EPS) of $0.76. These numbers suggest the dividend stock is making a consistent profit This is good news for dividend payouts. A company that’s earning money is more likely to be able to keep those dividend cheques coming.

Plus, the bank’s financial health looks pretty good. Its common equity tier-one (CET1) ratio is sitting at 10.9%. This ratio is a key indicator of a bank’s financial strength. A solid CET1 ratio means the bank has a good cushion to absorb potential losses if the economy takes a downturn. This makes it more likely that they can continue to pay dividends even when things get a bit tough.

Investing in Laurentian Bank can also be a way to help protect your portfolio when the market gets a little shaky. The dividend stock focuses on things like commercial lending and equipment financing. This gives them a variety of ways to make money and means it’s not relying too heavily on just one part of the economy. This diversification can help keep their earnings more stable, which in turn can help stabilize those dividend payments you’re counting on.

Bottom line

Of course, like with any investment, there are always some risks involved. The stock price can go up or down, and there’s no guarantee the dividend will stay the same forever. However, Laurentian Bank’s history of consistent dividend payments and plans for growth make it a dividend stock worth considering if you’re focused on generating income. By owning around 1,064 shares, you could aim for that $2,000 annual dividend income, providing a steady flow of cash and potentially some stability when the market gets a bit wild. Just remember to always do your own research and maybe chat with a financial advisor to make sure this fits your overall investment strategy.