Toronto-Dominion Bank Dividend Stock Analysis 2015

TD Bank

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.

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5 thoughts on “Toronto-Dominion Bank Dividend Stock Analysis 2015

  1. I initiated a position on TD, Canada has just entered a recession, I’m wondering if Canada will decrease rate a bit further to kick start the economy. I might look into buying a bit more if the stock pull back. Thanks for sharing your analysis!

    cheers!

    • Glad you liked the analysis, Vivianne. The Bank of Canada has already reduced the rate twice this year. They decided to hold it for now during the Sep meeting, but further cuts are not out of the question yet. Some economists are predicting/calling for a QE program here – we’ll see how things progress. I will be buying through the weaknesses of the Cdn banks.

      Best
      R2R

  2. I’ve been on the sidelines watching both TD and BNS, looking to initiate a position in either one over the next few months. I feel its a great time to be buying considering the substantial drop each has experienced over the past 12 months. If dividends remain solid, and I believe they will, their is lots of room for high total returns. This is especially true for US investors, then the CAD comes back up in value the dividends will be huge in USD terms.

    On a side note… Are you able to consider your seeking alpha article exclusive since a full write-up is not on this site? I’ve been considering creating links from my blog so I can potentially become an SA contributor.

    Regards,
    Dividend Odyssey

    • Hi DO,
      Welcome to the blog and thanks for the comment. Will check out your blog and follow your journey. TD and BNS have taken quite a beating and can give potentially great returns over teh coming years. As you mentioned, dividends are safe and will continue to be safe for the forseeable future. Where the FX rate will go is anybodys guess. Some ppl seem to think that CAD will not recover – but the same folks also said that CAD was a strong currency and everyone should consider buying some when it was strong. What is known for sure is that the CAD$ is tied to teh commodities market – and has become a petrodollar.

      Some articles on my site – like this analysis on TD is exclusive article for SA. That is why I post only a short excerpt on my site and redirect to the full article. Good luck with your SA contributions.

      cheers
      R2R

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