Whether you're a seasoned investor or someone who is just learning how to buy stocks in Canada, most Canadian retail investors will have one thing in common when it comes to their portfolios; they include Canadian bank stocks.

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Why?

For starters, every one of these banks on this list is a Canadian Dividend Aristocrat and is also included in most Canadian index funds. Newcomers are often drawn to bank stocks primarily because of their consistent, high-paying dividends.

Are Canadian banks a good buy now?

Historically there hasn't really been a "poor" time to buy into these blue-chip big banks or add to your position. Canadian investors witnessed the banks go through a significant bull run in late 2021, primarily because of the rumors of rising interest rates.

However, what was a tailwind has now turned into a headwind, and Canadian banks have struggled. Rates are increasing at a pace that could lead to a recession, and ultimately the market doesn't like it.

However, this means we'll be able to grab our favorite bank stocks on the TSX for even cheaper. I've owned Canadian banks for the entirety of my investing career, and regardless of whether or not they're going through a significant bull run or dip, I'll be adding consistently.

How safe are Canadian bank stocks?

The highly regulated Canadian banking market creates massive barriers to entry. This is similar to the Canadian telecom sector.

Most importantly, all 6 Big Banks have diversified product bases, including global banking, global wealth management, small business banking, personal banking, consumer and commercial lending, capital markets, and much more. Not only is their client base focused on Canadian consumers, but institutional clients also.

The Big 5 are incredibly important to the economy in Canada, as are some of the smaller regional players, such as the National Bank of Canada  and Canadian Western Bank. They deal with wealth management for clients, investment banking, mortgages, personal banking, car loans, and so much more. They are vital to a healthy economy.

A Canadian bank stock can be a cornerstone of one's portfolio, is low-risk, and provides growth and a steady income to increase your net worth over time.

After weathering the financial crisis better than most all world banks, the banks in Canada were also among the first to reinstate a rising dividend. In fact, the Bank of Montreal has one of the longest consecutive dividend payment streaks in the country, paying dividends since the early 1800s.

Is there an ETF for Canadian bank stocks?

There are a wide variety of ETFs for Canadian bank stocks. If you're looking for a traditional ETF that holds the Big 6 banks, look at the BMO Equal Weight Banks ETF or the RBC CA Bank Yield ETF.

However, if you want an ETF that can provide you with a bit more yield, look to Canadian bank ETFs like BMO Covered Call Canadian Banks ETF or even Canadian Banc Corp.

How to value Canadian bank stocks

One of the most reliable ways to value Canada's banks is to compare their current stock prices against historical averages. Whether they are traded at a discount or premium to historical and forward P/E averages, they have always returned to the mean.

Let's get to the best Canadian bank stocks to buy moving forward.

What are the best Canadian bank stocks to own today?

• Goeasy Lts (TSE:GSY)
• Canadian Imperial Bank of Commerce (TSE:CM)
• Bank of Montreal (TSE:BMO)
• Toronto Dominion Bank (TSE:TD)
• National Bank (TSE:NA)
• Royal Bank of Canada (TSE:RY)

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