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Description: Two big Canadian banks, TD and CIBC, have upped their dividends by 10% after announcing their latest quarterly results. The banking sector has done quite well during the pandemic, and the market had anticipated some range of dividend increase. Until recently, the regulator had been restricting dividend payments by the banks during Covid-19 in an effort to safeguard capital, an insurance, so to speak, in case borrowers encountered loan difficulties.

Date:  December 2, 2021



Discussion points:

1) Are you or any of your classmates invested in dividend-paying shares?

2) Why do you think the banks mentioned in the article would want to increase their quarterly dividends?

3) Starting on page 11-26 of Wiley’s Understanding Financial Accounting we see a section “What Other Ratios Measure the Returns Shareholders are Earning?” Which of these ratios focus on a company’s dividend-paying behaviours?

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