Toronto-Dominion Bank (TD.TO)

(Top Pick Nov 25/13, Up 20.25%) He is holding and buying for new accounts. Would be a Top Pick, but the show does not allow more than 1 Top Pick from the last year. He is also in BNS-T now. There will be lots of cross selling to the US consumer.

This came out with gangbuster earnings. Thinks the Q4 will be as good as well. This is the cream of the crop when it comes to banks. The only one better would possibly be Royal Bank (RY-T). If we are looking for interest rates to move higher, he would prefer to own this over any other bank. Their wealth management is doing extremely well. They are doing well on the US side. Personal and commercial loans are performing well.

Dividend stock for a TFSA? He doesn't run a dividend portfolio, so his response may not be the best. This bank is a great business. They have also done well in the US. Has a pretty decent yield and growing their earnings at 4%-5%. Dividend will probably grow 4% to 5% a year. However, Canadian banks have done so well for so long without risks, and at some point Canada could have a correction in its real estate market. If this happens, banks are going to have exposure to it.

A very interesting holding for investors, because amongst Canadian banks, it has probably had the most success in the US. Has more branches in the US than they do in Canada. With a stronger US$ in earnings coming back to Canada, it is going to have a multiplier effect on their bottom line.

One of his biggest positions, held since day 1, about 11 years. Their US expansion should start trickling down money soon. Their capital ratios are high and it only trades at 10 times forward earnings. Expects 8-12% rate of return.

Thinks all the Canadian banks will continue to increase dividends 5%-6% every year. Likes their exposure in the US because the US economy is growing, which will benefit this bank. Made a few acquisitions to garner a larger retail presence in the US. Her target price is about 10% higher, and it keeps moving as things keep improving. With the dividend rate at 3.5%, you can get a 12% total return that is quite attractive.

Preferred Y. 3.5595%. (Top Pick Nov 22/13, Up 4.69%) Old style rate reset preferred. He is still confident in holding this one.

In a rising interest rate environment this one would do the best in the US. Just buy it now. No reason to wait. It already had a good pullback.

(A Top Pick Nov 13/13. Up 16.21%.) Thinks this is the best in breed in Canada. It has done international expansion right. Focused in the best part of the US. Thinks it is in the right places. They have the ability to cross sell.

Has been underperforming the others a little bit over the last 2 or 3 months. 6% off the high back in the summer. There may be some concerns over the change in leadership, but the new person stepping in has been with the bank for many years. Great exposure in the US. Huge deposit base there, that they will hopefully exploit. The multiple is back in line, if not lower than some of the others. 3.5% yield.

(A Top Pick Oct 21/13. Up 20.82%.) His favourite bank globally. Have had a great growth record in North America, and he thinks that will continue. Yield of 3.46%.

Excellent choice. Good long-term. Doesn't know if he would add any right now. The retail bank is expected to grow in 2015 between 4% and 5%. That's not bad, but the bright spot for all these names is wholesale. Underwriting fees, marketing fees, mutual funds, etc. Those areas may take a step back if the bull market that we have seen gets a little bit challenged. It depends on their guidance and if this market stays sloppy. He is betting that we are not completely out of the woods yet and it is going to be a bit of a bumpy ride. You can add to your holdings at a little bit lower level.

Doesn’t follow banks closely, but they are getting caught up in the selloff as well. Pay nice dividends. One cautionary note that he would strike is that he is a little worried about housing prices. To him it is inevitable that there will be some kind of correction. That may hurt the banks, which may be happening right now. It is hard to go wrong with banks in general.

With a pull back in the Canadian banks, this is a good time to Buy. She still expects high single digit earnings growth in the banks, and they will continue to increase their dividends.

(Top Pick Sep 11/13, Up 24.63%) Still likes it. They will have a weakish quarter coming up, but then next year will be better. The US side will be large beneficiaries of higher rates. A good entry point now.