Canada’s six largest banks (Royal Bank, TD, BMO, Scotiabank, CIBC and National Bank) are among the most widely held stocks in the country and a large part of the S&P/TSX Composite Index. This page compares them on dividend yield, valuation and size. Yields and valuations move with share prices, so the figures below are a snapshot from TSX market data on September 25, 2026; check current ones before relying on them. Bank dividends are eligible Canadian dividends, which qualify for the dividend tax credit in a non-registered account. Every other guide in this section is listed in the Canadian stocks hub.
Big 6 Canadian Bank Stocks
Figures as of September 25, 2026 (TMX Money, the Toronto Stock Exchange’s quote service). The dividend is the latest regular quarterly dividend per share.
| Stock | Ticker | Dividend Yield | Quarterly Dividend | P/E Ratio | Market Cap |
|---|---|---|---|---|---|
| Royal Bank | RY | 2.5% | $1.76 | 17.4 | $396 billion |
| TD Bank | TD | 2.7% | $1.12 | 18.2 | $281 billion |
| BMO | BMO | 2.8% | $1.71 | 18.5 | $170 billion |
| Bank of Nova Scotia | BNS | 3.5% | $1.14 | 22.5 | $161 billion |
| CIBC | CM | 2.7% | $1.07 | 15.1 | $147 billion |
| National Bank | NA | 2.5% | $1.32 | 18.6 | $81 billion |
On these figures Royal Bank is the largest of the six by market value and Scotiabank has the highest dividend yield. A yield well above its peers usually reflects slower expected growth or weaker confidence in earnings, not a bargain on its own.
Individual Bank Profiles
Royal Bank of Canada (RY)
Royal Bank is the largest of the six by market value (about $396 billion on September 25, 2026). It completed its acquisition of HSBC Bank Canada on March 28, 2024, adding HSBC Canada’s clients to its Canadian banking, wealth management and capital markets businesses. Its yield was about 2.5%.
TD Bank (TD)
TD has large retail banking operations in both Canada and the United States. Its US subsidiary, TD Bank N.A., which the US Justice Department describes as the 10th-largest bank in the United States, pleaded guilty on October 10, 2024 to US anti-money-laundering (Bank Secrecy Act) violations and agreed to pay penalties and work under an independent monitor, which is the main risk investors weigh for its US business. Yield about 2.7%, P/E about 18.2.
BMO Financial Group (BMO)
BMO completed its acquisition of California-based Bank of the West from BNP Paribas on February 1, 2023, which substantially enlarged its US banking footprint. Yield about 2.8%, P/E about 18.5.
Bank of Nova Scotia (BNS)
Scotiabank has been narrowing its international banking footprint: on December 1, 2025 it closed the transfer of its banking operations in Colombia, Costa Rica and Panama to Davivienda. Its yield (about 3.5%) is the highest of the group on the figures above.
CIBC (CM)
Like the other banks, CIBC is exposed to the Canadian housing market through its mortgage lending. Its P/E ratio of about 15.1 is the lowest of the six on the figures above.
National Bank (NA)
Montreal-based National Bank is the smallest of the six by market value (about $81 billion). It completed its acquisition of Canadian Western Bank on February 3, 2025, which expanded its presence in Western Canada. Yield about 2.5%.
Dividend Income on $50,000
What $50,000 in each bank would pay a year at the yields above. Actual income depends on the price you pay and on future dividend changes.
| Bank | Yield | Annual Dividends | Quarterly Payment |
|---|---|---|---|
| BNS | 3.5% | $1,748 | $437 |
| TD | 2.7% | $1,328 | $332 |
| BMO | 2.8% | $1,413 | $353 |
| CM | 2.7% | $1,359 | $340 |
| NA | 2.5% | $1,261 | $315 |
| RY | 2.5% | $1,248 | $312 |
Annual dividends = $50,000 × yield. Quarterly payment = annual ÷ 4.
Canadian Bank Stocks vs Bank ETFs
| Feature | Individual Stocks | ZEB (equal-weight bank ETF) | VDY (dividend ETF) |
|---|---|---|---|
| Diversification | 1 stock | The big banks, equally weighted | 60 stocks |
| Management expense ratio | None | Check BMO’s fund page | 0.22% |
| Rebalancing | Manual | Automatic (equal-weight) | Automatic |
| Concentration | 100% one company | 100% banks | About 59% financials (banks and insurers) |
| Customization | Full control | None | None |
Which Account to Hold Bank Stocks
| Account | Tax Treatment | Notes |
|---|---|---|
| TFSA | Dividends and gains tax-free | No tax on withdrawal |
| RRSP | Tax-deferred | Withdrawals are taxed as income, and the dividend tax credit doesn’t apply to them |
| Non-registered | Eligible dividend tax credit | Dividends usually taxed at a lower rate than interest |
In a non-registered account, Canadian bank dividends qualify for the eligible dividend tax credit, so they are usually taxed at a lower rate than interest income.
Risks
| Risk | Explanation |
|---|---|
| Housing correction | All banks have mortgage exposure |
| Recession | Loan losses increase, slowing earnings |
| Regulatory changes | Regulators can raise capital requirements or restrict dividends, as OSFI did from March 2020 to November 2021 |
| Interest rate changes | Margins affected by rate movements |
| Competition from fintechs | Online banks such as EQ Bank and Wealthsimple compete for deposits |
| Single-country bet | All heavily tied to the Canadian economy |
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and September 26, 2026. How we check facts.