Toronto-Dominion Bank (TD.TO)

Up till now, one of the best operators. This is a blemish for a year. He's concerned that regulators will want to make a point. TD took reserves but it won't be enough for the potential penalty of $2-2.5B. Remember Wells Fargo. 

Big company, makes a lot of money. Dividend not in jeopardy, but may not be increased anytime soon. May be prevented from further acquisitions. Probably no share buybacks. Plus, we could be in a credit cycle with defaults escalating. 

Have to look at valuation. He's waiting. Likes it and its capital levels. If stock pulled back a bit more, he may take a position.

(A Top Pick Apr 28/23, Up 4%)

The Canadian banks reflect the growing weakness of the Canadian consumer. Also, TD has issues with US regulators about money-laundering allegations. Eventually, TD will pay a fine and move on. TD is one of the top Canadian banks. Buy on weakness, but shares could be flat for 12-18 months. He likes it though.

Investors are most concerned with the two issues of succession planning and US regulatory scrutiny. You have to believe that TD is vetting suitable candidates for when the time comes. Money-laundering fine expected to be north of half a billion $$.

Strengthened risk management. Outsourced regulatory support. Overhang is creating buying opportunity at a cheaper multiple than peers. Remains a good, high-quality bank, second-largest in Canada. Trades at 10x, 5% yield.

You need a bank with a strong Canadian franchise with some US exposure. TD ticks these boxes, having a large US presence. It's the only Canadian bank he owns. The money-laundering overhang and investor impatience over the CEO being there for 10 years has already baked into shares. Invest in this for the next 10 years, even starting with a partial position. The TD grows 10% annually, and they continue to have a strong presence in Canada and the US.

Not used to being in the penalty box. Rumblings on succession planning. Overhang on money laundering and penalties, which hits all banks at some point. Well run, risk averse. Attractive valuation. Most excess capital of any Canadian bank, with options to acquire, buy back shares, or increase dividend.

TD and BNS are the main ones in client portfolios. Both are more on the value side. Looking to the next 3-5 years, both have reasonable earnings growth and potential for multiple expansion.

Very defined down trend. Not good for investors. In comparison to Royal Bank or National Bank - not performing well. Would recommend other names in Canadian banking sector. Range bound stock with weakness. 

Tough time. Issues on US side with compliance. Transition period, some restructuring needed. First Horizons deal fell apart. Well capitalized. Needs to cut cost structure (layoffs), but it's hard to do.

Has owned this for a long time but won't sell because of the big capital gain. Shares have gone nowhere for a few years. Are concerns for the anti-laundering penalty in the US but TD is one of the best-capitalized banks in Canada. He can't believe TD's CEO is still around after failing to buy First Horizon Bank last year; he should be replaced. Prefers National and Royal. TD has lost its mojo.

Although Canadian banks are good for long term portfolio holdings there is a problem with TD since it has gone into the U.S. where it is just too competitive. TD is more like a regional bank there. Its numbers are fine but not fantastic. He switched to National Bank.

Both are the right ones to look at. Slight preference at the moment is towards TD on valuation. Bit more negative sentiment on TD due to regulatory scrutiny. Typical cycle of what happens to all the large banks, but no skeletons lurking. Both are buys today. Valuations are fairly attractive. Outlook for dividend growth isn't as strong given current environment, but still good dividend vehicles.

They face regulatory challenges in the U.S. over money-laundering allegations. TD is spending on compliance and regulatory in response. A year from now, these expenses will be behind them and the stock will catch up to its peers.

BCE beat, raised dividend, but free cashflow problems and layoffs. Dividend is really good. Will probably go to $48 before all is said and done. When there's bad news, stocks take a while to fully bleed out. Doesn't mean there isn't good value here from a dividend point of view.

For TD, banks are a tougher story due to capital ratios and inability to grow. Best balance sheet, due to failed takeover bid in US. Between the two, he'd pick this one right now. But instead of a bank, look to MFC or SLF.

It's been rangebound the past year. He owns it for income and potential growth, like this sector. Continues to be confident in TD, given its large position in Canadian personal and commercial, large US presence, capital markets, and wealth management business. Headwind continues to be the overhang of anti-money laundering regulations in the U.S. which hurt their attempted takeover of First Horizon Bank last year. Near-term they will continue to grow organically and buyback lots of shares and remediate with U.S. regulators. TD has the most excess capital among Canadian banks. They need to right their ship in the U.S., perhaps change executives. It will eventually return to its premium valuation.

Very bullish on Canadian banks in general. Canadian regulators don't care if TD makes more US acquisitions, as long as capital ratios remain in line. US regulators care, however. Widespread regulatory crackdown on money laundering will result in a fine, insignificant in the grand scheme.