Toronto-Dominion Bank (TD.TO)

[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.

It may be the best Canadian performing bank in 2018. It's near its all-time high, due to its large U.S. operations. (He works at another Canadian bank.) He sees a 2.5% lift-off with every interest rate move. TD is a great name. Hold what you have.

She owns Canadian banks, including TD. She likes TD because of its US exposure. In general, the Canadian banks have not done well this year, partially because of trade uncertainty and uncertainty about the housing market. TD has traded flat for the year. She thinks the Canadian economy will slowly improve. The market seems to be optimistic about the possible resolution of Canadian-US trade relations and is not punishing the banks.

This is not a great short-term trade. Other sectors, like energy, might have more room to run over the short term. This is less cyclical and more steady. He likes its valuation at this price. This stock has held up better than some of the other banks.

He has been underweight Canadian banks in favour of the US counterparts. TD has many assets in the US, but he has not been convinced this is the best way to access the US marketplace. If you want to own a Canadian company dealing in the US, this is a good bet.

(A Top Pick June 27/17 Up 20%). Last summer the Home Capital fears made this a great buy. Earnings remain strong and the fundamentals are supportive. This is a great hold until the next recession hits. He would continue buying here.

Should an investor reduce a large concentrated holding of bank stocks? This is a great business, but thinks it could go down to historical P/E multiples when markets turn lower. He would favor reducing a large exposure in the sector. You could get a similar yield from REITs and utilities.

(Past Top Pick, July 4, 2017, Up 21%) It's his largest bank holding. It's 50% U.S. retail, so it is exposed to the U.S. economy. The market is worried about the debt of Canadian consumers, so TD's U.S. exposure has made it the darling of Canadian investors.

He would buy it at these levels. Q2 earnings were up 21%. Expenses unchanged for the last two quarters. 17.6% ROE. Strong capital position. Not a bad growth rate.