Toronto-Dominion Bank Dividend Stock Analysis 2017

TD Bank

Toronto-Dominion Bank (TD.TO)(TD) is the second largest of the Canadian banks by market cap. The company provides a diversified array of financial services operating via three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. TD was founded in 1855 and is headquartered in Toronto, Canada.

A Closer Look

Toronto-Dominion Bank is the second largest of the Big Five Canadian banks. The company’s peers include Royal Bank of Canada (RY), Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CM).

The Canadian banks are regarded as some of the safest financial institutions in the world. The companies have a long track record of being conservative and focused on long-term stability and prosperity. Most of these institutions have existed and paid dividends for more than 150 years and make for great core positions in any investor’s portfolio.

Toronto-Dominion Bank has been a hit in retail financing in Canada, US and UK. The company made a conscious decision to expand their operations in the US during the global financial crisis, as the management saw an opportunity as financial institutions stumbled/collapsed. Those moves have paid off over the years as the increased revenue from US has provided shareholders with handsome returns.

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4 thoughts on “Toronto-Dominion Bank Dividend Stock Analysis 2017

  1. You already know I’m a fan of the Canadian banks. Thanks for sharing your take on TD. Along with this stock and RY and BNS I’m quite content in this department. They are my biggest positions in my ROTH and the fact that I haven’t bought any new shares just shows how strong these names have performed recently. I still reinvest dividends automatically though. Thanks for sharing.

  2. The numbers that you ran in the article, were they based on TD’s stock on the TSX or the NYSE? Because you come up with a fair value that’s about $20/share less than its current share price and yet call it “fair valued”. Just wondering if I’m essentially looking at the wrong set of numbers (you valuing TD.TO while I’m looking at TD).

    They are a great bank and everyone I speak to seems to really like them. They are all over the East Coast here in the USA. Soon we’ll have as many TDs over here as Chases.

    ARB–Angry Retail Banker

    • That’s correct ARB. I am using the TSX listed stock and all references are in CAD$ — the native currency of the company’s financials.

      I have noticed more TD locations popping up over the years in the US over the last decade or so. Those moves in the post financial crisis world are paying off.


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