Toronto-Dominion Bank (TD.TO)

The expectation is that the rate is going to invert next year. That is not good for banks. If you believe that next year is the great inversion, you don’t want to own any financials. Period.

He favours TD-T of the major banks due to their brand diversification and product mix. Canadian banks, in general, are reasonably valued. He is recommending to buy some, but not creating a large holding at this time. This would be at the top of the list, although BNS-T might be better value right now.

Do you see TD hitting $87 in Q4? He'd rather buy a US bank or at least a Canadian one with US exposure--TD and BMO. Both have excellent loan growth in the U.S. You're paid a good yield by TD and it's trading better than most of the S&P 500.

This has been a go to bank, because of their US exposure. It could make new highs and there are not a lot of warts with this one. At some point you would be better off holding a US bank as some there are trading at lower valuations. There will be other leaders going forward.

(Past Top Pick, May 25, 2017, Up 29%) Great retail operations in Canada and U.S. They increased their dividend 10% this year, and boast the lowest payout of all the Canadian banks. They'll continue to do well, given their U.S. presence and interest rates rises.

(A Top Pick September 12, 2017. Up 23%). This is now trading at record levels even though the bank itself has not done that well this year. The stock was knocked down in the summer because of sales practice issues but has fully recovered. It has led the big 6 banks this year. She likes the growth arising out of the US exposure and considers the 4% yield a good yield. The company increases earnings at the level of earnings growth. She expects 15% earnings growth this year, which suggests a likely rise of 15% in the dividend. Next year, as US growth moderates, she expects growth to slow to the single digit level. This is not the type buy in her current stock universe, but she still recommends buying it on a pullback. Yield just under 4%.

(A Top Pick Jul 19/18, Up 4%) It is one of the largest companies in Canada. Half of it is a US bank and has been a great engine for growth.

He likes the growth profile in the US, which he thinks is starting to pay off. Its operations will be bigger in the US, than in Canada. It is very well run and managed. Yield 3.4%. (Analysts’ price target is 85.56$)

They didn’t have a great quarter. The wholesale business was down whereas retail was higher. In the US it is doing exceptionally well. Investment Banking is doing very well also but they are not huge in this area. But the stock has been doing very well for a long time.

The best story in Canadian banking with the U.S. expansion leading to great results. Yes, there is risk in Canadian banking (from real estate), but TD has diversified its capital and is beating earnings. It's trading at a premium to the sector, but TD earned that premium.

(A Top Pick July 7/17, Up 25%) They have such a large weighting in the US that it could affect how they can do business in the US. He likes it and continues to own it.

(A Top Pick April 20/18 - Up 12%.) The banks are an anchor in the portfolios. You use them as a top pick when on a relative basis they have underperformed. It was a good timing. A core holding. Still would buy it here.

One of the more expensive Canadian banks and so doesn't own much of it. Trading at much over x2 book value. Dividend at 3.4% yield. Expanded well into America, but expansion costs a lot of capital--what is the return on this capital? Well-managed and done some great things. Dividend could rise.

It's had a simple uptrend since 2016 and continues to make newer highs. A very good chart. Canadian bank charts as a whole look fantastic. (3.4% yield, Analysts' price target $83.88)

(Past Top Pick, Sept. 1, 2017, Up 21%) It's his favourite bank. It's kept its nose clean in all catastrophes since 1980--and he likes that. Plus, they have superb customer relationships (he's one).