Toronto Dominion

TD-T

(A Top Pick Dec 10/18, Up 14%) It was the only bank last quarter that released results and saw the stock go up. They had under-performed in the first quarter. This is one of his favourites of the Canadian banks.

His fundamental analyst likes this as well. The stock is consolidating and is poised to breakout to the upside again. The 20 year chart demonstrates an uptrend since late 2002.

They have done extremely well over the last few years. Their US expansion has gone beyond their expectations. He would look more at CM-T or BNS-T. Any of the big banks are relatively safe places to be. You could buy more of the higher yielding ones.

The Canadian banks are relatively attractive on a valuation basis. It is trading at 11 times forward earnings. She does not see the Canadian economy going into recession and they will be able to continue growing earnings. Yield 3.9% (Analysts’ price target is $83.54)

He would buy if it goes to around $71. He likes TD with its US holdings. He would wait to make an entry in this name.

A quality solid business who just beat their earnings estimates this quarter. Trades around 11 times earnings. Yield 3.92% (Analysts’ price target is $83.32)

Why does TD get hit the hardest? Depends on the time period. YTD, TD had underperformed its US peer group. It's recovered a lot. He's trimmed back on all his banks. Valuation, earnings, and loan growth concerns. Still a very solid bank to have in your portfolio.

This is a play on TD continuing to gain market share in the US. He sees the US economy as being better than the Canadian economy, however US economy is still not going gang buster. TD has been able to win market share from the other US banks. It is still early days as far as gobbling up market share. They may have the best retail platform in Canada and are taking these best practices to the US. This opportunity is somewhat immune to the performance of the US economy. Yield = 3.8% (Analysts’ price target is $83.32)

(A Top Pick May 25/18, Up 4%) His largest bank holding. They beat for the quarter. It will probably go into the $80s. Probably raise the dividend later in the year.

Don't let any single stock take up more than 7% of your portfolio, so don't be afraid to trim if a stock has grown like TD has. He has no worries about TD. Q1 was shaky, but should improve in Q2. Their exposure to the stronger US economy is good. He expects dividend increases and 305% earnings growth from all the Canadian banks this year. They are trading at a discount from their 20-year PE ratio, at 10x vs. 11.5x earnings.

His biggest of all his bank holdings. The only knock is that it is hard to see what they can do next. The yield is a little lower relative to the peer group, because the stock price has done so well.

(A Top Pick May 08/18, Up 4%) The stock hasn't done anything in the past year, but the dividend pays a solid 4% that continues to grow. It trades at less than 11x forward earnings, below historical averages. Canadian housing is slowing, but it won't crash. Valuations reflect these concerns, so you can buy TD at these levels.

He'd buy it tomorrow. Really well run. Trading at 11x earnings. Great franchise down south. Weakness is capital markets exposure in the States, so they may acquire a US investment bank. Yield of 4%.

(A Top Pick May 16/18, Up 3%) Dividends are important. Their businesses have been doing well, and earnings are up 12%, though the stock price has been flat. His return comes from the dividend. They actually incurred a loss in their last quarterly report, which was surprising, but he expects a good report later this month. You can sleep well owning this long-term.

It hit a nice bottom recently around $68. It has nice upside potential and a decent dividend. Management quality is great and leads the way in customer satisfaction. They seem to be able to avoid tough issues.