How to invest Canadian Imperial Bank of Commerce Stock in Canada [2025]

Key Takeaways

• Canadian Imperial Bank of Commerce (CM) posted strong Q3 2025 results with a 16.7% YoY net profit increase to $2.10B.

• Stock trades at USD 86.15 with a TTM P/E ratio of 14.78 and a forward dividend yield of 3.46%.

• Analysts’ average price forecast is USD 80.73, below current levels, signaling cautious short-term outlook.

• CM shares can be held in TFSA or RRSP accounts, with U.S. withholding tax exempt in RRSPs.

• Alternative investment options include ETFs like ZEB.TO and stocks like RY or TD.

Canadian Imperial Bank of Commerce (CM) is one of Canada’s major banking institutions, offering a broad range of financial services including retail and business banking, wealth management, and capital markets solutions. Headquartered in Toronto with over 44,000 employees, CIBC’s core revenue streams stem from its strong presence in Canadian personal and business banking, which alone contributed more than 42% of its Q3 2025 revenue. Its competitive edge lies in its innovative digital-first strategy and growing footprint in the U.S. and global markets, positioning it well for long-term growth and dividend stability.

Source: Canadian Imperial Bank of Commerce Company Profile, data as of 2025-11-17

Is Canadian Imperial Bank of Commerce (CM) stock overvalued or undervalued?

For Canadian investors evaluating whether Canadian Imperial Bank of Commerce (CM) stock represents a value opportunity or a risk of overvaluation, several angles must be considered. A company’s valuation interlinks fundamental financial metrics with broader market expectations. In the case of CM stock, recent earnings growth, dividend history, and investor sentiment point toward both strengths and caution flags.

Canadian Imperial Bank of Commerce's stock price has seen consistent upward momentum recently, reaching a 52-week high of USD 87.29 on November 13, 2025, with a latest close price of USD 86.15. Despite these gains, CM stock's overall valuation appears aligned with its long-term growth trajectory. Backed by a trailing twelve months (TTM) PE ratio of 14.78 and a stable dividend payout, CM continues to attract income-oriented and value investors.

While these numbers indicate that CM stock may offer fair value relative to the banking sector average, investors must consider future expectations more closely. This leads us to a focused breakdown of key metrics that underpin current Canadian Imperial Bank of Commerce stock price dynamics.

Key financial metrics for Canadian Imperial Bank of Commerce

Source: moomoo, data as of 25-11-17

Canadian Imperial Bank of Commerce (CM) price forecast

Looking ahead, analysts offer a broad spectrum of price targets for CM stock, reflecting varied outlooks on profitability, macroeconomic conditions, and interest rate trajectories. As of the latest consensus, the average price forecast for Canadian Imperial Bank of Commerce stock sits at USD 80.73, with high and low estimates of USD 86.24 and USD 75.55 respectively. This range suggests potential for moderate downside relative to the current Canadian Imperial Bank of Commerce stock price, reinforcing the importance of timing and market sentiment in planning an entry point.

Furthermore, the “Buy” consensus from 70% of analysts signals long-term bullish expectations, driven by strong capital ratios and strategic growth initiatives in areas such as wealth management and digital banking. With its dividend yield and consistent earnings growth, the CM price forecast appeals to investors seeking stability in the North American banking sector.

Canadian Imperial Bank of Commerce stock split analysis

The Canadian Imperial Bank of Commerce (CIBC), trading under the stock symbol CM on both the NYSE and TSX, underwent its most recent stock split on May 16, 2022. This 2-for-1 stock split, executed in the form of a 100% stock dividend, effectively doubled the number of CIBC shares outstanding, reducing the share price by half at the time while maintaining investor value. The purpose of this CIBC stock split was to improve affordability and boost trading liquidity, making shares more accessible to retail investors. While CM stock splits are infrequent, understanding its implications is crucial for making informed investment decisions when buying CIBC stock in Canada.

Source: moomoo.com, data as of 25-11-17

Canadian Imperial Bank of Commerce dividends analysis

For investors seeking a stable income stream from their equity holdings, Canadian Imperial Bank of Commerce (CM.US) offers a consistent and well-supported dividend program. As one of Canada’s major diversified banks, CIBC plays a significant role across commercial banking, wealth management, and capital markets. This makes its dividend policy a central part of its value proposition, especially in a volatile economic environment where reliable income sources are highly sought after.

The bank currently offers a forward dividend yield of approximately 3.46%, a figure that appeals to income-focused investors without sacrificing sustainability. Its payout ratio—hovering around 46%—indicates that CIBC maintains a disciplined approach, covering dividends with ample earnings cushion. Even amid economic uncertainty, the bank's strong fundamentals, capital adequacy (CET1 ratio of 13.4%), and steady earnings growth bolster confidence in its dividend continuity. This makes Canadian Imperial Bank of Commerce dividend stock a solid inclusion for long-term, income-seeking investors in Canada.

Dividend summary of Canadian Imperial Bank of Commerce

Source: Canadian Imperial Bank of Commerce, data as of 2025-11-17

Can I Invest Canadian Imperial Bank of Commerce (CM) Stock with a TFSA or RRSP?

Canadian residents looking to invest in Canadian Imperial Bank of Commerce (CM) stock can take advantage of registered accounts like the Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). Since CM is listed both on the TSX and the NYSE, it's fully eligible for inclusion in these registered accounts. Buying U.S.-listed CIBC shares through a TFSA is permitted, but investors should note that dividends paid in USD may be subject to a 15% U.S. withholding tax, which cannot be recovered in a TFSA. Conversely, when buying U.S. stocks in an RRSP, this tax is generally exempt due to the Canada-U.S. tax treaty, making an RRSP a more efficient vehicle for holding U.S.-based CM shares. Both TFSA and RRSP allow capital gains to grow tax-sheltered, making them popular choices among Canadians investing in cross-border stocks like CIBC.

How to invest Canadian Imperial Bank of Commerce (CM) stock in Canada?

Investing in Canadian Imperial Bank of Commerce (CM) stock offers access to one of Canada's largest financial institutions, with diversified revenue streams across personal banking, commercial services, and capital markets. If you are a Canadian-based employee with limited time but high interest in U.S.-listed CIBC shares (CM.US), here’s a streamlined, step-by-step guide.

Step 1: Pick a stock trading platform

To invest CM stock in Canada, start by selecting a trading platform that supports access to U.S. stocks. Key features to consider include:

• User experience: A mobile-friendly interface and fast trade execution are ideal for busy professionals.

• Fee structure: Evaluate commission fees, foreign exchange charges, and inactivity fees.

• Access to U.S. markets: Ensure the platform supports trading of NYSE-listed stocks like CM.US.

• Research tools: Look for platforms that offer real-time market data, analyst ratings, and financials.

Step 2: Choose the right account type and open an account

To trade U.S.-listed CM stock, Canadian investors can open several types of brokerage accounts:

• TFSA (Tax-Free Savings Account): Investment gains can grow tax-free. However, foreign withholding tax applies to U.S. dividends.

• RRSP or SRRSP (Registered Retirement Savings Plan): Offers tax deferral and added benefit of no U.S. withholding tax on dividends.

• Margin Account: Allows borrowing to buy stocks. Greater risk, but suitable for experienced investors.

• Cash Account: Easiest to manage. You can only trade with available funds.

To open a brokerage account in Canada, you’ll need to provide your Social Insurance Number (SIN), proof of identity (such as a driver's license), and a Canadian bank account for funding.

Step 3: Fund your account

Once the account is approved, you can transfer money using common deposit methods such as Interac e-Transfer, wire transfer, or direct bank link (via bill payments or pre-authorized debit). Note that converting Canadian dollars to U.S. dollars may incur FX fees when buying CM.US.

Step 4: Research Canadian Imperial Bank of Commerce's fundamentals

Before investing in CM stock, analyze its financial performance. As of November 2025, CM.US trades at $87.17 with a trailing P/E of 14.78 and a dividend yield of 2.96%. Revenue is driven largely by Canadian Personal and Business Banking (42.2%) and Commercial Banking and Wealth Management (23.75%). Dividend growth and profitability metrics like a 28.89% net profit margin further underscore its value. Always review CIBC’s quarterly earnings, free cash flow trends, and capital ratios to assess long-term viability.

Step 5: Set a budget for your Canadian Imperial Bank of Commerce stock purchase

Decide how much you can invest in CM stock based on your income, savings, and target portfolio allocation. Prioritize emergency savings before committing capital. If a full share is too expensive, consider brokers that offer fractional shares, allowing you to invest a smaller amount without buying a whole unit.

Step 6: Place your Canadian Imperial Bank of Commerce's order

To place your order, log in to your broker platform, enter CM.US, and select the trade type such as market, limit, or stop order. A market order executes immediately at current price, while a limit order sets a maximum price you're willing to pay. Double check the quote in U.S. dollars and confirm order execution details.

Step 7: Monitor and manage your investment

Track your CM stock performance regularly through your broker’s app or financial news outlets. Review changes in earnings, dividend announcements, and macroeconomic trends that impact Canadian banking. Rebalance your allocation periodically to stay within your risk tolerance and financial goals.

Alternative ways to invest in Canadian Imperial Bank of Commerce?

While buying individual shares is a common approach, there are several alternative ways to gain exposure to Canadian Imperial Bank of Commerce (CM.US) stock. These options may suit Canadian investors looking for diversified exposure or strategic engagement with the stock.

Canadian Imperial Bank of Commerce ETFs

Exchange-traded funds (ETFs) offer a convenient way to invest in a basket of securities, which can reduce risk compared to holding a single stock. Investors may prefer ETFs for their liquidity, diversification, and ability to target specific sectors or regions.

• ZEB.TO - BMO Equal Weight Banks Index ETF: Tracks the performance of major Canadian banks, including CIBC, with equal weighting. Suitable for those wanting balanced exposure across the financial sector.

• XFN.TO - iShares S&P/TSX Capped Financials Index ETF: Provides exposure to a broad group of Canadian financial companies, with CIBC as one of its largest components.

• : A diversified Canadian market fund which includes CIBC among other major Canadian firms.

Canadian Imperial Bank of Commerce options

For Canadian investors with a more advanced risk appetite, options trading can be a way to benefit from price movements in Canadian Imperial Bank of Commerce stock without owning it directly. This involves contracts that give you the right, but not the obligation, to buy or sell the stock at a specific price before a certain date. As of mid-November 2025, CM.US options reflect moderate implied volatility and stable volume, which may appeal to options traders looking for income strategies or hedging opportunities.

Stocks similar to Canadian Imperial Bank of Commerce

Investors seeking alternatives to Canadian Imperial Bank of Commerce might consider other large Canadian banking institutions with similar business models and dividend profiles.

• Royal Bank of Canada (RY): Canada’s largest bank by market capitalization, offering diversified financial services globally.

• Toronto-Dominion Bank (TD): Strong presence in both Canada and the U.S., known for retail banking and conservative risk management.

• Bank of Montreal (BMO): One of the top five Canadian banks with a solid dividend history and presence in both North American and global markets.

• Bank of Nova Scotia (BNS): Offers international exposure in Latin America and the Caribbean, in addition to Canadian operations.

Is it a good time to invest Canadian Imperial Bank of Commerce (CM) stock?

Canadian Imperial Bank of Commerce (CM) has demonstrated steady financial resilience, which could draw the attention of Canadian investors evaluating opportunities in the banking sector. As of November 14, 2025, CM shares closed at USD $87.17, marking a 8.6% increase over the past month. The stock’s trailing twelve-month (TTM) price-to-earnings (P/E) ratio stands at 14.78, close to its 5-year average, suggesting a valuation in line with historical norms—a relevant consideration for value-conscious Canadian investors.

From a performance standpoint, the bank's Q3 2025 earnings revealed a 16.77% year-over-year increase in net profit (CAD 2.10B) and an EPS beat of CAD 2.15 versus the consensus of CAD 1.986. These gains were underpinned by broad strength across segments, led by Canadian Personal and Business Banking contributing 42.2% of revenue.

However, cash flow volatility remains a point of attention. Operating cash flow dropped 52.31% YoY in Q3 to CAD 5.86B, despite strong ROE (3.60%) and a robust net profit margin of 28.89%. Additionally, macroeconomic uncertainties like fluctuating interest rates and trade policy shifts could influence future growth.

Analyst sentiment, while generally positive (seven out of ten analysts rate it "Buy"), shows a target price range from USD $75.55 to $86.24, with CM currently trading above the highest forecast—suggesting potential limited short-term upside based on consensus.

Source: Moomoo, data as of 25-11-14.