{"id":546164,"date":"2010-04-28T12:26:00","date_gmt":"2010-04-28T16:26:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:430198"},"modified":"2010-04-28T12:26:00","modified_gmt":"2010-04-28T16:26:00","slug":"canadian-bank-dividends-the-wait-continues","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/546164","title":{"rendered":"Canadian bank dividends: The wait continues"},"content":{"rendered":"<p>With global banks facing pressure from regulators in terms of their capital levels, Barclays Capital analyst John Aiken believes there is a very real risk that target payout ratios at Canadian banks will reverse themselves, reverting back to between 35% and 45% of earnings.<\/p>\n<p>He warned that industry earnings would have to increase by almost 25% from the strong levels in the first quarter of 2010 to reach the mid-point of this range.<\/p>\n<p>\u201cShould the banks begin to lower their payout ratios, investors could have to wait several more quarters before they see material dividend increases,\u201d Mr. Aiken said in a note. \u201cAdditional growth would be required to generate dividend increases.\u201d<\/p>\n<p>So while the banks are suggesting that higher interest rates will have a positive impact on margins and earnings, if dividends remain static, valuations may come under pressure.<\/p>\n<p>With the industry\u2019s payout ratio now back down below 50%, concerns regarding dividend cuts have subsided. However, increases could ne another issue entirely. <\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a> <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=430198\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With global banks facing pressure from regulators in terms of their capital levels, Barclays Capital analyst John Aiken believes there is a very real risk that target payout ratios at Canadian banks will reverse themselves, reverting back to between 35% and 45% of earnings. He warned that industry earnings would have to increase by almost [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-546164","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/546164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=546164"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/546164\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=546164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=546164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=546164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}