
To be clear, this money isn’t a capital gain, which you earn when share prices go up or when you sell the stock for profit. Dividend Stocks What are dividend stocks? Dividend stocks are stocks that send you a sum of money (usually quarterly, but sometimes annually) simply for owning shares in the company.Cannabis Stocks Motley Fool Canada’s cannabis content.As with profitability, a couple metrics could help you see how much banks are… Assess the bank’s risks One of the biggest risks a bank has is losing money on an outstanding loan. The lower the efficiency ratio, the more revenue a bank theoretically has. Efficiency ratio: the efficiency ratio tells you how much revenue a bank uses towards its operating costs. The higher the ROA, the more profit a bank makes from its assets. Return on assets (ROA): the ROA tells you the overall profit a bank makes in relation to its assets. The higher this metric, the more efficient a bank is using its stakeholder’s money. Return on equity (ROE): this metric tells you how much profit a bank makes from its shareholder’s equity.

To do that, you can use the following metrics. Look at the bank’s profitability First, you want to be sure the bank is even profitable. Over time bank stocks have been relatively safe investments, as they offer products and services that most people need. Bank Stocks What are bank stocks? Bank stocks represent partial ownership in a financial institution that’s licensed to hold and loan money.Stocks for Beginners If you’re looking for stocks for beginners, you’ve come to the right place! Our staff of experts help find some of the best beginner stocks for Canadians.
