
TSE:TD
This summary was created by AI, based on 56 opinions in the last 12 months.
Toronto-Dominion Bank (TD) has shown resilience and solid performance across its business segments, particularly in wealth management and capital markets. Analysts appreciate the bank's ability to navigate a favorable regulatory environment, with OSFI lowering thresholds for risk-weighted assets, allowing TD to lend more capital. Despite its strong growth, concerns linger regarding its high valuation, as TD currently trades at historically elevated price-to-earnings ratios close to 16x. Many experts suggest trimming positions as the stock has experienced significant gains over the past year. The consensus seems to point to caution, recommending investors wait for better buying opportunities, especially given the uncertainty surrounding TD's U.S. expansion and ongoing regulatory challenges.
The sector had performed well up to the last few weeks. Banks generally benefit from rising interest rates. However, deposit rates will go up as well, albeit much slower. The bigger risk for Canadian banks is the slowing loan growth. He likes TD because of the US exposure. It is a good valuation at these levels. It remains a long term hold for him.
Owned since 1995. Dividends have grown, and faster than other Canadian banks, which bumps the share price. Owns TD, a Swedish bank, HBSC in India, and Jardine Matheson. Better than owning all 6 Canadian banks. Cash flow lets these companies raise the dividend so you can double your money faster. Yield is 3.6%.