Laurentian Bank approches another dividend increase
True it increased the dividend in December,2017 but it is approaching the time to increase again.That's because over the last 3 years it has increased it's dividend every 6 months.Another two good quarterly results and they will be in position to make another small increase in ,for example, September.Laurentian did quite well in 2017.Q4 adjusted net income increased by 23% and per share by 7% and they had a small increase in equity.Loans to business customers were up by 22% and reported net income was $5.40 per share.Still the price came from $60 per share 3 months ago to it's present $52.Through all this Laurentian Bank increased it's dividend to $.63 from $.62 per share in December.
Other banks are Impressed
Laurentian (LB) has $47 billion in assets and $32 billion in assets under management (AUM).And it has 1.5 million customers.Recently after the Bank of Canada increased it's prime rate LB raised it's prime rate from 3.20 to 3.45%.Many other banks have given forecasts with target prices for LB and all are well above it's present level.Forexample, BMO gave a target price of $62 per share and Credit Suisse which formerly had a target of $64 lowered it to $59 per share.Also it just finished a new equity issue for 2.6 million shares with shares priced at $54.80 per share.But with present market conditions it has fallen (like the rest of the market) to $53 per share.
First quarter Results
LB pays out a dividend of $2.52 annually which equals a yield of about 4.8% and it's P/E ratio is 9.5 according to Qtrade (an independent broker).This blog sees a 18 to 22% increase in adjusted net income in Q1which on an annual basis is equal to about $250 million or $6.20 per share.This would lower the P/E ratio to 9 times earnings.This is well below the industry average of 11 to 13 times.If true, then this give LB enough momentum to push towards $59 to $60 just as Baystreet.ca has predicted.
Another Good Quarter
As was stated in the opening paragraph LB has on average increased it's dividend every 6 months over the last 3 years.A 16 to 18% increase in adjusted net income in Q1 would put Laurentian Bank in a position to increase after Q2 with another good quarter.That would put the annual dividend at $2.56 a share.And then the share price should be above $55 by Q2. use blogdaleupsome for financial analysis; get business solutions from Blogdaleupsome
Other banks are Impressed
Laurentian (LB) has $47 billion in assets and $32 billion in assets under management (AUM).And it has 1.5 million customers.Recently after the Bank of Canada increased it's prime rate LB raised it's prime rate from 3.20 to 3.45%.Many other banks have given forecasts with target prices for LB and all are well above it's present level.Forexample, BMO gave a target price of $62 per share and Credit Suisse which formerly had a target of $64 lowered it to $59 per share.Also it just finished a new equity issue for 2.6 million shares with shares priced at $54.80 per share.But with present market conditions it has fallen (like the rest of the market) to $53 per share.
First quarter Results
LB pays out a dividend of $2.52 annually which equals a yield of about 4.8% and it's P/E ratio is 9.5 according to Qtrade (an independent broker).This blog sees a 18 to 22% increase in adjusted net income in Q1which on an annual basis is equal to about $250 million or $6.20 per share.This would lower the P/E ratio to 9 times earnings.This is well below the industry average of 11 to 13 times.If true, then this give LB enough momentum to push towards $59 to $60 just as Baystreet.ca has predicted.
Another Good Quarter
As was stated in the opening paragraph LB has on average increased it's dividend every 6 months over the last 3 years.A 16 to 18% increase in adjusted net income in Q1 would put Laurentian Bank in a position to increase after Q2 with another good quarter.That would put the annual dividend at $2.56 a share.And then the share price should be above $55 by Q2. use blogdaleupsome for financial analysis; get business solutions from Blogdaleupsome
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