Who doesn’t like a cash machine? I’m talking about the kind that pays you money not the kind that takes it away from you. There are plenty of those. Personally, I have enough of the latter (bills). I pay plenty of people/companies all the time; banks, energy, telecommunications and insurance companies to name a few. It would be nice if companies paid me, even once in awhile…
Actually, they can and do.
That brings me to CIBC, why I’m an owner. CIBC is a leading Canadian-based global financial institution with two lines of business: CIBC Retail Markets and Wholesale Banking. CIBC’s Retail Markets include personal banking, business banking and wealth management groups. Beyond clients in Canada, they have significant footings in Hong Kong, Singapore and the Caribbean – they are truly a global organization. CIBC’s World Markets Inc. is the wholesale, other arm of CIBC. They provide more client-focused products and services such as investment banking, merchant banking, and research to governments, institutions and corporations.
•Has a market cap of about $27 B.
•Has over 1,000 branches across Canada.
•Has been a good stewart to charities contributing millions to national, regional and local organizations.
From an investor’s perspective, CIBC:
•Has not missed a regular dividend payment since 1868.
•Has doubled its dividend since 2003 (then $1.64/share now $3.48/share).
•Has a strong dividend yield of ~ 5% (at $0.87/share).
•Has a five-year dividend growth rate of over 7%.
CIBC just issued their most recent dividend payment (July 28). Cash Machine reinvested almost four shares into my account at no cost. With them, I continue reap the benefits of dividend investing. For one, I’m allowing reinvestments to grow at a compounded rate; greatly increasing income stream for our future. Second, dividend-paying stocks are *typically* not as volatile as other stocks – less risky – which can be important in stagnated or declining markets when growth isn’t guaranteed year after year after year. Also, I’m taking advantage of dollar-cost averaging and getting our money working for us (so we don’t have to someday). Sure, when CIBC prices are higher, fewer shares are purchased but when prices are lower, I’m getting more full and partial shares with each dividend payment.
CIBC has a great history of paying and raising dividends and there’s no reason for that to change.
In closing, I fork out money each month for goods and services I consume. Simply, as a dividend-investor, I would like to get some of that money back.
Do you know a Cash Machine?