Share · TSX
Should you buy National Bank of Canada shares?
One of Canada's Big Six banks, with a strong home base in Quebec and a long dividend record. Here is our rating, the honest trade-offs, and how to buy the share from Canada.
Key points
- One of Canada's Big Six banks, with a strong base in Quebec.
- Diversified across personal, commercial, wealth and capital-markets banking.
- A long track record of paying and growing a dividend.
- Trade-offs: concentration in the Canadian and Quebec economy, and rate-cycle sensitivity.
01Our review
National Bank of Canada overview
National Bank of Canada is one of the country's Big Six banks, with a strong home base in Quebec and operations across personal and commercial banking, wealth management and capital markets. It is listed on the Toronto Stock Exchange (TSX) and quoted in Canadian dollars. Our rating follows the HelloBrokers methodology: we weigh the fundamentals, the competitive position and the risks, and we do not publish made-up price targets or a fabricated analyst consensus. Below we set out what we like, the risks to keep in mind, and the practical ways to buy the share from Canada through a CIRO-regulated broker.
Strengths
- A member of Canada's Big Six with a strong Quebec franchise
- Diversified across retail, commercial, wealth and capital markets
- A long record of paying and growing a dividend
- Operates in a well-regulated Canadian banking system
Watch-outs
- Concentration in the Canadian and Quebec economy
- Earnings sensitive to the interest-rate and credit cycle
- Exposure to Canadian housing and consumer credit
- Priced in CAD: currency exposure for foreign holders
02Snapshot
National Bank of Canada at a glance
04Our verdict
Should you buy National Bank of Canada shares?
Big Six bank with a strong Quebec base
A diversified Canadian bank with a strong home franchise and a long dividend record. Our view weighs its stability against its domestic concentration, without hype and without invented targets.
This is analysis, not investment advice. The bull case: a member of Canada's Big Six with a strong Quebec franchise, diversified across retail, commercial, wealth and capital markets, with a long record of paying and growing a dividend.
The bear case: the business is concentrated in the Canadian and Quebec economy, and earnings are sensitive to the interest-rate and credit cycle and to Canadian housing. As with any single stock, returns are also affected by the Canadian dollar for investors outside Canada.
Overall we see National Bank of Canada as a Big Six bank with a strong Quebec base. It can suit a diversified, long-term portfolio for investors who understand the risks. As always, we do not publish made-up price targets.
05Get started
How to buy National Bank of Canada shares
There are two main routes. For most Canadian investors the cash share through a regulated broker is the more suitable one. A broker comparison is below.
Cash / spot
Buy the cash share through a broker
Open an account with a CIRO-regulated broker and hold the share directly in Canadian dollars, with full shareholder rights and any dividends. You can hold it in a registered account such as a TFSA or RRSP, or in a non-registered account. In a non-registered account, capital gains are taxed in Canada under the standard 50% inclusion rate as per Canadian tax law (CRA), meaning half of a realised gain is added to your taxable income. This is the most direct way to invest for the long term. This is not tax advice.
CFD (leveraged)
Trade it as a CFD (leverage)
Some international brokers offer share CFDs. Leverage amplifies both gains and losses, the cost is the spread plus overnight financing, and you do not own the share. These international brokers are not registered with CIRO and serve Canadian clients cross-border. CFDs suit short-term traders who understand the risk; most retail CFD accounts lose money.
For most investors, buying the cash share through a CIRO-regulated broker and holding for the long term is the most suitable approach. Compare brokers below.
08Where to invest
Where to buy National Bank of Canada shares
To buy National Bank of Canada, favour a CIRO-regulated broker with low fees and good coverage of Canadian shares. Compare them side by side below.
Compare brokersNational Bank of Canada share FAQ
- Through a CIRO-regulated broker offering access to the TSX, holding the share in Canadian dollars in a registered account such as a TFSA or RRSP, or in a non-registered account. Some international brokers also offer the share as a CFD, but they are not registered with CIRO and serve Canadian clients cross-border.
- Yes. National Bank of Canada trades under the symbol NA on the Toronto Stock Exchange and is quoted in Canadian dollars (CAD).
- In a non-registered account, capital gains are taxed in Canada under the standard 50% inclusion rate as per Canadian tax law (CRA): half of a realised gain is added to your taxable income. Gains inside a TFSA are generally tax-free and inside an RRSP are tax-deferred. This is not tax advice.
- No. We do not publish price targets and we refuse to invent figures or a fake consensus. Where a credible, dated analyst view exists we cite the named source; otherwise we say there is none.
Why trust the HelloBrokers view on this share
We are an independent editorial team. National Bank of Canada does not pay us, and we do not publish invented price targets or a fake analyst consensus. The rating follows our methodology; affiliate links to brokers fund our work but never change the conclusion.
This content is for information only and is not investment advice, a recommendation or an offer. Past performance does not guarantee future results. Investing in shares carries a risk of capital loss; CFDs amplify that risk. Do your own research and consult a qualified professional where needed.