“Right now, the fundamental outlook for the group is still very strong,” he said. “You’re probably not going to really get back to normal until the latter half of this fiscal year. But, in the short term, over the next two quarters, the outlook looks very bright.”
Finally, he is looking at what could happen on the regulatory and political fronts, particularly with bank taxes and dividend collection funds. “These are unknown for this fiscal year,” he said.
Wessel said that, while there was a major slowdown in 2020, most of the recovery seems to have happened in 2021. Therefore, the fiscal and calendar year of 2022 will see remnants of the recovery, which is not over yet, even if it will get a boost from some of these drivers, who are not as powerful. But, he is hopeful that things will return to normal in the next 12 months.
Those who are bullish on Canada’s economy are positive towards banks and expect the interest rate environment to normalize in a systematic way. But those who are unsure about fiscal and monetary policy, and the potential blunders, feel so bumpy it could be, they think the central bank is going to have a harder time opening everything up, so are less optimistic. Huh
“No matter where you are, the fact remains that the dividend yields of these companies are quite high,” Wessel said. “His history of consistent dividends leads the world.
