Toronto-Dominion Bank (TD.TO)

(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).

One of his main Canadian bank holdings. Great idea to use DRIPs. Wouldn’t buy more right now if you already own. Great job growing the US franchise. Well diversified. Not trading at a crazy multiple. A stock you can own forever. (Analysts’ price target is $83.75.)

He thinks the banks still have some room to move higher. He thinks there is about 6 months more runway space. He has some longer term concerns with a pullback because of the economy. (1 year target price $75.00)

(A Top Pick August 17/17 Up 26%) They were pulling back into a good valuation area when he bought them. He still owns it and likes it with an expectation of a dividend increase in the next two quarters. He expects positive earnings to be reported in the near future.

He prefers to get US exposure by buying US banks directly. If someone prefers to get US banking exposure while staying in Canada, TD is the right way to go, but he recommends US banks instead.

(Past Top Pick on Sept 21, 2017, Up 16%) He took some profits. A great name wth a great chart. He swapped it out for BMO in December. Still likes TD. The issue with the banks in general is how much runway do they have left (in the housing market).

Buy now or wait? His second-largest position. Owned for a long time, and won’t be selling. Would probably add at this level. No longer a Canadian bank, it’s a North American bank and their favourite NA one. More US branches than Canadian, and the US economy is booming.

(A Top Pick July 27/17, Up 24%) Best performing Canadian bank stock. Benefiting from growth in net interest margin south of the border. Given where we are in the market, if going to buy, buy half a position, and be paid while you wait for future opportunities. Has the best dividend and price growth.

[Call had 80% of portfolio in TD-T]. Beware of over diversification. This is the opposite. It is a tremendous risk. He suggests diversifying. Take some money off the table. He thinks there is a good chance the markets will take a beating before the end of 2020 and possibly by the then of this year. Your max should be 20% in any one stock. His favourite other Canadian bank world be LB-T but he would not buy it at this point. Look at US bank stocks.

This is a core part of their portfolio. Own other Canadian banks as well. They own Scotiabank and Royal Bank. TD has nice exposure to USA. He generally likes the banks. They are cornerstones of a well built portfolios. Banks have outperformed the TSX in 18 of the last 25 years. With interest rates rising will provide a catalyst.

The second largest bank in Canada, who made large investments in the US. They are now the 9th largest bank in the US. They are a quality name and would continue to hold it. Yield 3.5%.

Is it a good time to do a covered call? The banks do well in October to December. TD has enjoyed good
runs in the summer, but generally summer is not a strong time. Yes, write a covered call for it now.

It makes an ROE on Canadian retail of over 40%. They are now a Top Ten US bank. He targets $95 or more for the stock. (Analysts’ target: $83.57).

Excellent. Buy it on a pullback whether as a first position or adding to your shares. August tends to get sloppy in the markets. TD's U.S. presence is important. In fact, they're probably bigger in the States than here. There's lots of room to expand down there. He hasn't sold his shares at all. 3.5% dividend.

They've had a successful expansion in the U.S. which should continue to do well, but it's cost a lot of money to launch down there. TD stands in the upper-end of its valuation. He owns three other Canadian banks instead and is content with them.