National Bank of Canada (NA.TO)

Toronto Dominion (TD-T) or National (NA-T)? Feels that TD is the better bank. It has better opportunities in North America and has made some really great acquisitions. National has outperformed TD in the last little while but TD is the better bank down the road with better opportunities. Don’t expect the big moves that you have seen with the banks in the last little while. They’ll probably improve 10% and will have good dividend increases.

Should this be switched to US banks instead? This is the only Canadian banks that he owns but its outlook over the next year or two is going to be pretty muted because it is a Canadian only bank. US banks have a better outlook right now. If you are going to only own one bank, US banks would be better. (See Top Picks.)

Trying to find companies with High ROEs and low PEs. Sees another dividend increase this year and record earnings this year barring a housing crisis.

(A Top Pick Dec 19/11. Up 14.5%.) Have this very protected market in Québec that they dominate. Least international of all the Canadian banks. Still likes.

This one is always a poor cousin to the other banks. Struggles to compete and struggles to grow. Banking in general is going to be somewhat weak. If you’re happy with the dividend, keep it. If you’re looking for capital gain, sell it and find something else.

They have made some interesting moves of the last couple of years. Expanded out west and are not a Quebec-locked bank. The only negative is that we have a government in Quebec that may impose some taxes. They are in a higher tax jurisdiction.

(Market Call Minute) Buy because of deals to get more exposure in the asset management space.

(A Top Pick Sept 14/11. Up 9.49%.) Raised its dividend twice last year and thinks it will raise it again in the 3^rd or 4^th quarter. Very cheap.

(A Top Pick Aug 22/11. Up 11.82%.)

This is the only bank he owns. Made a deal today selling the mutual fund portion of Wellington West to Manulife (MFC-T). This gives them cash that they can put towards their core business. Reporting on Thursday and the market is expecting good results.

4% yield. Expectations for single digit earnings growth over time. Will not do too wrong by owning it but compared to other banks he is not sure they are up to the task. Is expected to increase dividend this week and have a good payout ratio. Has the most domestic loan exposure and least outside of Canada, which is a concern for him. Investors can’t go wrong but there are others.