Canadian Banc (TSE:BK) Hits New 12-Month High - Should You Buy?

Key Points

• Canadian Banc Corp. hit a new 52-week high intraday at C$15.04 (last C$15.01), trading up about 2.1% with roughly 403,790 shares changing hands.
• The company declared a monthly dividend of C$0.1675 payable May 8 (ex-dividend Apr 30), implying a 13.3% yield and a payout ratio of 33.61%.
• Shares trade at a low P/E of 3.24 with a market cap of C$738.05M; the firm shows strong liquidity (current ratio 2.47, quick ratio 2.23) and moderate leverage (debt-to-equity 69.49).

Canadian Banc Corp. (TSE:BK - ) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as C$15.04 and last traded at C$15.01, with a volume of 403790 shares trading hands. The stock had previously closed at C$14.75.

Canadian Banc Trading Up 2.1%

The company has a current ratio of 2.47, a quick ratio of 2.23 and a debt-to-equity ratio of 69.49. The company has a market cap of C$738.05 million, a price-to-earnings ratio of 3.24 and a beta of 1.13. The firm has a 50-day moving average price of C$14.02 and a 200 day moving average price of C$14.21.

Canadian Banc Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Friday, May 8th. Shareholders of record on Friday, May 8th will be issued a $0.1675 dividend. This represents a c) dividend on an annualized basis and a yield of 13.3%. The ex-dividend date of this dividend is Thursday, April 30th. Canadian Banc's payout ratio is currently 33.61%.

About Canadian Banc

The Companys investment objectives are (i) to provide holders of Preferred Shares with cumulative preferential floating rate monthly cash dividends at a rate per annum equal to the Prime Rate plus 0.75%, with a minimum annual rate of 5.0% and a maximum annual rate of 7.0% (ii) to provide holders of Class A Shares with regular floating rate monthly cash distributions targeted to be at a rate per annum equal to the Prime Rate plus 2.0%, with a minimum targeted annual rate of 5.0% and a maximum targeted annual rate of 10.0% and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012.

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