Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They paid a 37% premium for their US acquisition. However, it is immediately accretive to EPS on closing. The acquisition gives significant additions to its operations in the US Southwest. TD can close without equity dilution. They will become the sixth largest bank in the US. Unlock Premium - Try 5i Free
She likes Canadian banks. PEs have climbed from last year, but still reasonable. Royal and TD are her top banks. Likes TD for its US presence, and retail in US and Canada. TD has the strongest capital base, and has an interest in Schwab. RY: Likes their diversity, scale. Both banks yield around 3.5% and will continue to raise them as earnings grow.
(A Top Pick Dec 07/21, Up 13.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TD is progressing well. We now recommend trailing up the stop (from $89) to $97.
There's a good runway for most banks as interest rates rise. TD has done very well lately. Their valuation is the second-highest among Canadian banks (RY is higher). It pays a 3.5% yield and likely will increase, based on solid capital bases. What's there to complain about? It's a core holding. He would not take profits.
Canadian banking sector has been a great place to be, oligopoly. "Hates" being a customer, but loves being an owner. All in excellent shape. The sector is a core holding in his Canadian strategy.
Both are good banks and look fine. The dividend will probably increase. As with other banks they are good for buying in the short and mid term but there will be competition in the long term. He owns TD but BMO.
TD vs. NA He prefers TD over NA and advocates taking profits if a position has become overweight. Opportunity in TD looks better for 2022. TD is over-capitalized the most. Its US-centric footprint is more net-margin sensitive than Canadian banks. With interest rates poised to rise, this should advantage TD. Its capital markets business (with lots of operating leverage) is less important to its earnings than NA, and this will weigh on NA. NA's CEO is new, whereas TD's is seasoned.
It will benefit from rising interest rates. Also it will benefit from the transition from capital income to fee income. It has $13 billion in excess capital and $11 in Charles Scwab. He owns it.
(A Top Pick Dec 14/20, Up 37%) She likes this sector. They will release more reserves. She likes their exposure to the U.S. They have a strong capital base, good for downside protection. They hold an interest in Schwab which is a source of cash.
Top Cdn Bank? TD and BMO are the two he recommends as they recently beat earnings expectations. He likes them both for their US growth opportunity. BMO raised their dividends significantly. Very safe stocks to hold.
Has owned TD for a long time, likes the stock.
3.7% Divided Yield.
Overcapitalized which allows to buyback shares and increase dividends.
Over reserved in March of 2020.
Great retail and commercial franchise in Canada & USA.
Not too expensive at current prices.
Time to take profits? Don't let market conditions dictate your decision making. Well run. Good US exposure, that's where the growth is. Reasonable valuation. Compelling yield compared to bonds is around 3-3.25%.
Stockchase Research Editor: Michael O'Reilly Following recently reported earnings that beat expectations, TD is a TOP PICK. As concerns swirled about the Canadian banks, TD beat earnings expectations by over 8% as EPS grew 56% over the year. Loan loss provisions are declining as volume of loans is increasing. It trades at 12x earnings compared to peers at 13x and is valued just under 2x book value. It pays a good dividend (which was increased by 12%), backed by a payout ratio under 45% of cash flow. We would buy this with a stop loss at $89, looking to achieve $126 - upside potential over 32%. Yield 3.35% (Analysts’ price target is $125.73)
In a non-registered, RRSP or TFSA over 10 years? It depends on your situation and the size of each account. Start with the TFSA--the more you grow tax-free, the more it benefits you. Remember, you can't claim a loss in a TFSA. TD is his largest bank holding and the best bank.
Toronto Dominion (TD.TO) Frequently Asked Questions
What is Toronto Dominion stock symbol?
Toronto Dominion is a Canadian stock, trading under the symbol TD.TO (previously TD-T on Stockchase) on the Toronto Stock Exchange (TD-CT). It is usually referred to as TSX:TD or TD.TO
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They paid a 37% premium for their US acquisition. However, it is immediately accretive to EPS on closing. The acquisition gives significant additions to its operations in the US Southwest. TD can close without equity dilution. They will become the sixth largest bank in the US. Unlock Premium - Try 5i Free