Toronto-Dominion Bank (TD.TO)

(A Top Pick Jan 27/18, Up 16%) It was really buying o a valuation basis but it is a long term hold. He has a lighter hold on Canadian banks generally. Their US banking was up 19% so their expansion in the US was doing well and their dividend was up 12%. He sees less growth next year, however.

(Past Top Pick on July 12, 2017, Up 19%) There's a misconeption that banks will suffer from rising interest rates. He's confident about TD.

This is a core holding. It's Canada's second-largest bank, highly profitable with a 16% ROE and 11.7X earnings. 40% of those earnings come from the U.S., so TD will benefit from corporate tax cuts there. It will also benefit from rising interest rates. (Analysts' price target $81.25)

26% of operations in the U.S. They increased their dividend and she sees 12% earnings growth in 2018. (Analysts' price target $81.84)

You can take your pick of the Canadian banks which have recovered from a recent dip. TD is well-diversified and boards strong wealth management revenue, and half their branches in the US. Pays a dividend yield of 3.7%. (Analysts' price target $81.84)

He thinks banks look cheap as a group. TD looks good compared to its peers with its more US focus. Very good balance sheet. Yield 3.7%. Nice growth. (Analysts’ price target is $81.84)

(A Top Pick Mar 20/17, Up 15%) He would not buy it today but it is a great investment to hold. His favourite bank.

Should I buy the stock, or did I miss the boat? They have own it since they started the company. Great bank. Continues to like it. A unique franchise. In the US they are doing very well. Management is very strong. Yield is 3.7%

Canadian banks have underperformed the Americans by 25% over the past year, given US tax reform and an improving economy, but Canadian banks will see double-digit earnings growth this year and deserve more credit. TD has the biggest U.S. presence. The Canadian banks are still cheap.

At 10.5 times next year earnings, this is great value. The took a write-down on the changes in the US tax code, but that will now become a tail wind for them. This is a good entry level. Yield 3.8%. (Analysts’ price target is $82.10 )

It got to an expensive price and is pulling back. It is more expensive than tonight's top pick in banks.

TD-T vs. BMO-T. Canadian banks have been underperforming the US. There are still some challenges here in Canada, such as less interest rate increases. The changes in real estate laws are still working through the market place. He would underweight Canadian banks.

He owns three of the others. The US growth costs capital and it is the Canadian shareholder that is funding it. They still have a relatively high multiple.

Be patient, having fallen from $75 to today's $69/share. The Canadian banking group is down 6% YTD, but this reflects the overall TSX. The banks had a good Q1. She likes TD's U.S. exposure with its good growth. Earnings should be 12% this year. Dividends will grow in line with earnings. Canadian bank valuations are in line with 10-year averages.

BNS-T vs TD-T Comment. He owns both of these and feels bullish on both of them. He holds a slightly greater weight in BNS-T, who is exposed more to the developing market segment with faster GDP growth. TD-T has an expanded footprint in the US with the recent acquisition of Ameritrade.