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