He's holding through the storm. TD is in the penalty box, but the PE is very attraction. He would add at these levels. TD can rectify its current issues; they have the highest tier-one capital of all of the Big 5 banks. They can weather any storm then buyback shares. Their performance in the US has not been super, but it is in Canada
You own this purely for income, and you need a part of your portfolio for income--for retirement. It's a great income stock, though share price growth is not high. He prefers TD first, and BNS next. We're a low point in sentiment for banks, interest rates will declines, the bank net interest margins will lift and profits will expand. Sit tight and let it play out. BNS has a strong domestic and emerging market bank operation. Also, the valuation is low now.
Has pulled back to a fair valuation for a phenomenal compounder. It's not a REIT, but a real estate corporation. So, they retain their capital to do deals. (REITs don't retain capital, so are stuck when there's a downturn.) MEQ buys smaller mid-market apartments, competing with mom-and-pop operators, not REITs. MEQ is counter-cyclical, and pays strong returns on time.
(Analysts’ price target is $205.00)Other payments stocks are sexier, but you don't know if they will work. You need to be in the payments sector as more payments go digital. Visa is the largest and most profitable in this space. Has little capex, they buy back shares and gushes cash. Recent negative headlines about anti-trust and fines pushed the valuation down to a reasonable below 25x instead of a normal 30x.
(Analysts’ price target is $311.25)
His hesitation has always lied with its reliance on their phone for revenues. It's an iPhone company doing phenomenally well with a software valuation. Yes, services are comprising more of its revenues, but they have a long way to go. Prefers MSFT.