2 Recent Buys – BIP, TD

BuySell

A quick update on a couple of purchases in our portfolios. It is getting harder and harder to find good value plays as the market seems be pushing the boundaries on the valuation front. With a lot of stocks trading close to 52-week highs, pickings have been pretty slim. However, due to an oversized cash position, I decided to pay up on a couple of strong companies and add to my existing positions.

Continue reading

Recent Buy – Toronto-Dominion Bank

TD Bank

Stop the presses! I made a purchase of a large cap dividend growth stock šŸ™‚

jk…As most readers may be aware, I have been deploying a lot of my capital into precious metal equities (and the regular index fund purchases) lately. Heck, I’ve only had two or three transactions in the past six months where I have bought a dividend growth stock for my portfolio.Ā This is because I see more value andĀ opportunity in the precious metal sector and that has consumed my focus lately. However, about 1/3 of my portfolio is still invested in dividend growth stocks that brings in a sizable amount of passive income each month. This transaction is another move on that front as I saw a good opportunity to add to an existing holding.

Continue reading








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.

Continue Reading >








Toronto-Dominion Bank Dividend Increase

TD Bank

The Toronto-Dominion Bank (TD) announced a dividend increase of 7.84%. The quarterly dividend increases from C$0.51 to C$0.55 per share and payable on and after April 30, 2016, to shareholders of record at the close of business on April 8, 2016.

TD is a Dividend Challenger and this is the 6th consecutive dividend increase from the company. The annual dividend amount increases from C$2.04 to C$2.20. Yield going forward is 4.29%.

From the earnings release statement:

“We are pleased to report adjusted earnings of $2.2 billion, up 6% from the first quarter last year,” said Bharat Masrani, TDĀ President and Chief Executive Officer. “Our performance reflects organic growth, favourable currency translation and expense management.Ā Our first quarter results demonstrate the ability of our diversified business model to perform in a challenging environment. Looking ahead, we remain focused on driving organic growth, improving our productivity, adapting and innovating with new initiatives and investments, and helping our customers achieve their goals.”

Our portfolio consists of 50 shares of TD, which increases our annual dividends from C$102.00 to C$110.00, an increase of C$8.00.








Diversification of Canadian Banks – Take Two

Last week, I posted an article that took a deep dive on the geographical diversification of the Big Five Canadian banks – Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CM). The article can be found here.

In that article, I presented data for geographical revenue diversification of the banks – and presented 10-year trend charts.

Revenue provides only part of the story, and I decided to continue digging and pull the earnings numbers as well. Unfortunately, the earnings presented in the annual reports are broken down by segment and not geographical regions, so there is no apple-to-apple comparison to see which geography is earning the most. However, looking at the segment breakdown can also provide some insight on which direction a bank is headed.

For the sake of completeness, I am also including the charts for geographical revenue diversification in addition to the earnings-by-segment charts. Enjoy.

Continue reading