TSE:TD

Toronto-Dominion Bank (TD.TO)

157.74
-0.29 (0.18%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
2224 watching
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 64 opinions in the last 12 months.

The Toronto-Dominion Bank (TD) has shown strong performance in recent months, recovering well from past regulatory issues related to money laundering. However, experts express concern over the current high price-to-earnings (P/E) ratio, which exceeds historical averages. Many analysts suggest that the stock is trading at a premium compared to its peers and is overvalued by about 5-16%. There are mixed opinions on the future growth potential, with some emphasizing that growth opportunities in the US remain limited due to regulatory restrictions. Most experts recommend trimming positions and waiting for a better entry point, indicating cautious optimism about long-term prospects amidst current overvaluation and market dynamics.

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Consensus
Trim
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Valuation
Overvalued
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RY
PAST TOP PICK
(A Top Pick Feb 10/10. Up 18.72%.) Still likes.
BUY
Favourite bank, Canadian and US retail. Thinks they will raise the dividend in either the Feb report or the next one. Likes to buy at $73.
TOP PICK
Likes their US assets. Very customer friendly bank.
TOP PICK
Great retail bank and they understand retailing. Loves the recent Chrysler Financial deal as they only paid a small premium to book..
BUY
Earnings were a little disappointing and probably took a hit from their US exposure. Based on earnings estimates, it has the lowest multiple of all the big 5 banks. Expecting dividend increases from all of the banks next year.
COMMENT
Incredibly well run bank if you have a longer term horizon. They are looking for growth on the US side and expect they will end up being a major bank in the US market. He plays financials through the iUnits S&P Financial (XFN-T). (Not adding to this but when it goes through $25 he’ll start rotating into energy (iUnits S&P/TSX Energy ETF(XEG-T)), which he expects to do better next year.)
DON'T BUY
Just announced 24% growth. More employees in US than in Canada. Low ROE in the US at 6%. Canadian costs are up. Home ownership in Canada is at record highs and doesn’t see a lot more in home ownership. Doesn’t expect lending and mortgages to grow as much. Would like to see a lower price.
PAST TOP PICK
(A Top Pick Jan 6/10. Up 1.45%.) Floating rate note maturing February 15/11.
COMMENT
There is a big question on dividends of the banks and at this point they are able to increase dividends, but because of the uncertainty of Basil 3, none of them seem willing. This one and Bank of Nova Scotia (BNS-T) are best positioned to increase them. Probably in the 1st quarter of 2011.
TOP PICK
Thinks it will be the first of the big 5 to raise its dividend as it has the lowest payout ratio. Expects all the banks to earn sluggish type earnings, 6%-7% increases, but looking at 8%-10%. Likes their US strategy.
BUY
Likes Cdn banks. In a period of rising interest rates, which he doesn’t expect to happen soon, they might find a little squeeze in terms of their book. Expecting dividend increases over the next couple of years.
TOP PICK
Strong leader in domestic franchise. Better earnings growth than most of the other banks. Comfortable with their US exposure.
TOP PICK
(A Top Pick Nov 19/09. Up 14.2%.) Did a great job expanding into the US retail market.
COMMENT
Watch the entire sector. They have had a pretty good run. Don’t chase any of these financials. Be very selective. US expansion is going fairly well. TD has a plan in the states and so far so good. He doesn’t think a big bet in the US right now is that prudent and they are not doing that.
COMMENT
TD Capital Trust II Bonds callable 2012, due 2052 with a 6.792% coupon. Fairly confident these will be called Dec 31/12. When this was initiated, it was always intended to be a 10-year deal.
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