A play on the US economy, consumer. Get about 80% of their business comes from the US. Well positioned to grow business as the economy is recovering. Going forward, they’re going to grow market share. They’ll benefit from tax reform, they have the cash and the technology. Yield is about 2%. They should be in a position to raise the dividend or repurchase stock with the review at the end of June. At 12-13x forward earnings, it’s attractive. (Analysts’ price target is $ 121.36)
Royal’s down a bit. Good 2nd quarter results of 11% growth year over year. Performance gap between them and TD, which is not deserved. Good loan growth coming out of the US. Yield is about 3.6%, payout ratio is low. Dividend growth will track earnings growth. (Analysts’ price target is $110.52)