Toronto-Dominion Bank (TD) is the second largest of the Big Five Canadian banks by market cap. The Big Five Canadian banks control most of Canada’s financial sector and are counted amongst the safest and strongest financial institutions. The companies have a long track record of being conservative and focused on long-term stability and prosperity.
TD has existed as an institution since 1855 and paid dividends since 1857. It makes for a great core position in any investor’s portfolio. There are plenty of headwinds facing the Canadian economy and the banks – including a recession, weak Canadian dollar, possibility of a housing bubble and potential crash – which have led to very attractive valuation levels for investors looking to initiate or add to their positions. This article takes a closer look at the stock and provides a full dividend stock analysis.