Canada continues to be a standout player in the global economy.

While Europe and China struggle with recessionary conditions, Canada’s February GDP (gross domestic product) showed a solid 1.7% gain, its fastest pace since July 2012. January’s growth was also revised higher, giving the economy its two strongest back-to-back gains since July and August of 2011, causing many analysts to raise first-quarter GDP growth estimates to 2.3% from 1.5%.

The Canada economy continues to get a big boost from its mining and energy industries, with growth in mining, quarrying, and oil and gas extraction expanding 2.2%, the fifth straight increase. Mining and quarrying alone expanded 6.4% on higher output at potash mines. Output in oil and gas extraction rose 1% from higher oil production.#-ad_banner-#

Canada is also benefiting from the fact that it didn’t fall as deeply into recession as many other countries did during the financial crisis. No Canadian bank needed a bailout, housing prices did not collapse, and Canada’s growth consistently outpaced its peers among the Group of Seven industrialized economies.

With strong mining and energy industries and a smaller economic contraction providing tailwinds, Canada’s economy continues to grow in a challenging environment.

That’s why I am such a big fan of Canadian banks, which are a great way for investors to cash in on that growth. They provide leveraged exposure to economic growth, but they’re typically less aggressive with their use of debt and leverage than their American counterparts. After the financial crisis of 2008, company risk and leverage ratios became a much higher priority to investors.

Many of Canada’s biggest banks also carry outsize dividend yields, something Elliott Gue looks for in his Top 10 Stocks newsletter. With yields as high as 4.8%, Canada banks pay more than twice the yield on the 10-year Treasury, even after its recent jump to 1.96%. That’s a solid stream of income in an environment of record-low interest rates.

Here are six Canadian Banks cashing in on the trend with yields up to 4.8 %.

From the group I’m looking at Canadian Imperial Bank (NYSE: CM) because of its low valuation and Bank of Montreal (NYSE: BMO) for its high dividend.

Canadian Imperial Bank
With a market cap of $31 billion and more than 1,100 branches, Canadian Imperial provides investors with significant exposure to Canadian growth. Analysts are projecting earnings growth of 3% this year and 7% in 2014. That has Canadian Imperial trading with a forward P/E (price-to-earnings) ratio of just 9 times, below its 10-year and peer averages of 11 times. The bank carries a solid dividend yield of 4.7%.

Bank of Montreal
Bank of Montreal is also one of Canada’s largest banks, with a market cap of $39 billion and over 1,500 branches. The company’s share price has been mostly range-bound for the past two years. That has shares trading at a discount to historical value, with a forward P/E ratio of 10 times compared with its 10-year average of 12 times. Bank of Montreal’s share price has supported the bank’s dividend yield of 4.8%. The bank’s debt-to-equity ratio of 15 % is well below its peer average of 215%, a signal that Bank of Montreal is running a much more conservative business model to reduce volatility.

Risks to Consider: The Canada economy is highly leveraged against the success of its energy and mining industries, which both are quite sensitive to business cycles. Ongoing economic weakness in China and Europe could disrupt demand.

Action to Take –> The Canadian economy continues to demonstrate consistent growth, driven by strength in its energy and mining sectors. A great way for investors to cash in on that trend is with Canada banks. Canada banks not only provide leveraged exposure to economic growth, they also carry outsize dividend yields.

P.S. — Have you heard about the $1.7 trillion “Dividend Vault”? Simply put, it’s the easiest way we know to collect thousands of dollars in dividends each month for the rest of your life. To learn more, click here.