Should you buy CIBC stocks in 2021?

Some investors preyed on the pandemic market crash last year. They bought extensive Canadian bank stocks like CIBC stocks. It is the oldest trick of the stock investment book: “buy low, sell high.” The banking stocks were on sale at basement prices in 2020. Those investors are most likely enjoying price gains in 2021.

Is CIBC stock undervalued?

CIBC ( TSX:CM) is currently down more than 20% this year, though it’s still above the October low. Contrarian investors are wondering if CIBC stock is now undervalued and good to buy for a self-directed portfolio focused on passive income and total returns. CIBC is Canada’s fifth-largest bank with a current market capitalization near $53 billion.

Is CIBC the best Big Six Bank to buy right now?

In fact, CIBC stock may just be the best Big Six bank to buy right now. Let’s start off with how CIBC stock has performed in the last quarter, given that its earnings are due Feb. 25. The big headline was that the company upped its dividend. Shareholders now get access to $6.44 per share per year.

Is CIBC a good investment?

Plus, the dividend should be extremely safe as CIBC aims to keep its payout ratio between 40% and 50%. If you’re considering adding CIBC to your portfolio, although it may face increased risk in the short term, it’s still one of the best companies that Canadians can buy as a long-term investment.