Recent Buy: Canadian Imperial Bank of Commerce (CM)

ID-100426334 Recent Buy: Canadian Imperial Bank of Commerce (CM)I open a new position with the purchase of Canadian Imperial Bank of Commerce (CM)

19 shares @ $77.46 on 9/4/2019.

This increases my forward 12-month dividend income by $164.64 to a total of $9,307.96. I also updated my portfolio page to reflect the change.

 

 

 

My Thoughts

I now own three different Canadain Banks. They are TD, BNS, and now CM.

TD and BNS have been great investments for me so far. I hope CM will be as well. So far it is already up 8.42% since I made my purchase.

The company sports a nice dividend yield at 4.99% which is a little higher than its 5-year yield average of 4.7%.

The company has been increasing its dividend since the Great Recession in 2009. It has a payout ratio of 45% based on 2018 earnings.

With all that said, I find CM to be fairly valued, and I recommend it as a HOLD at this time. I have a fair value price at $88.04. This means that CM is 4.7% slightly undervalued based on today’s price of $84.04 (9/20/2019).

I was fortunate enough to get it at the price I did of $77.46. This represents an undervaluation of 13.7%.

 

CM-1024x794 Recent Buy: Canadian Imperial Bank of Commerce (CM)

Source: Fastgraphs.com

 

What do you think about the company? Plan on owning it or already do? or why not?

Thanks for reading, and don’t forget to connect with me through Facebook and Twitter to see my latest buys.

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