Toronto-Dominion Bank (TD.TO)

Best Canadian bank? This is one of his favourite banks. Because they have strong exposure to the US, it has done an incredible job of building out their branch networks. The US is going to be a safe haven. You may see more money flow into the US, which might be good for this bank.

His favourite bank. It has had a focus in the US and is diversifying away from Canada. His view is that this is a retail bank focused on the customer, and less risky than capital markets and international. A conservative way to play the banking sector.

(Market Call Minute.) It doesn’t go up as high as the other banks, but this is a Buy. (See Top Picks.)

P/E ratios and BV are still below historical averages. She likes their exposure in the US. Expects dividends to grow for all the banks. Dividend yield of 3.9%. (See Top Picks.)

This receives a premium valuation relative to the other Canadian banks because of its US exposure and perceived growth opportunities. In the Canadian banks, this will be at the top of his list.

Bank of Nova Scotia (BNS-T) or TD (TD-T) and FinTech competition? Everybody is competing with FinTech these days and all the banks have issues. A lot of FinTech’s advantage is that they are not really regulated at this stage and can do a lot of things regular banks cannot do. Banks are taking measures including cutting costs, introducing new technology, etc. It is still early stage. The choice between these 2 banks is that this one has better exposure and BNS has better International exposure. At this point he thinks TD is winning out with a steadier economy.

One of the best in Canadian retail banking. Their numbers were good. He likes that they have a great presence in the US. They will continue to increase their dividends and earnings. Dividend yield of 3.81%.

They have become part Canadian and part US. They made some phenomenal acquisitions in the US. He does not like the entry price here.

Has very nice US exposure, and she is more positive on the US economy versus Canadian. All banks have given disclosure on their energy book. Provisions are going up a bit, and thinks they are manageable. Expects to see a slow recovery in the Canadian economy. For a new client, she would start building a position in this.

It looks interesting but it is at the higher end of the valuation range of the Canadian banks. He worries far less about the banking system and the housing market in Canada. They have great diversity. This is not going to burn you. You have the yield until growth starts happening again.

It is trading in an elevated range. This is a bullish pattern. Within this range investors are generally accepting the level. In the long, long run it looks fine. It has to break above $58 before it can go higher.

Banks will be higher by year end. The one looming thing is the impact over the years of FinTech. The banks are spending a lot of money trying to match what is coming down the pike in terms of high-tech, and he thinks they’ll succeed. Expects they will go 5% higher, including dividends, by the end of the year.

(A Top Pick April 27/15. Up 2.47%.) Banks are great buys and this is his favourite, along with Royal (RY-T) and Bank of Montréal (BMO-T). He likes their US exposure and the continued likely acquisition programs in the US. Looking out 2-3 years, banks are a great Buy.

Sell to get into a stock that has more growth? He likes this bank. A good, long term holding. You get 50% US, which is a little better growth. They are good operators. Dividend yield of 4% and it is going to grow. If this has become more than 7%-8% of your portfolio, he would consider selling it for diversification. Choices that are similar are all a little more expensive than the banks. (See Top Picks.)

(A Top Pick April 10/15. Up 4.85%.) He is hoping to see a dividend increase. If you want exposure to the US banking system, this is probably the better way to do it. They have a good foothold. With the US economy growing faster than Canada, this is a good place to be.