Q: Long term dividend growth investor recently retired. Thinking about reducing my position in TD. While the dividend growth has been good, the stock price and earning have not. The consensus earning forecast doesn't look good either. As far as I can tell, the only reason for hope is that the CEO's unofficial 10 yr term is coming to an end. Some say that it will get better once the money laundering matter is behind them, but I'm not so sure. The problem seems to be earnings or lack of them.
Can I get your outlook for TD?
Can I get your outlook for TD?
5i Research Answer:
We think TD is ok. The sector has not exactly been a stellar performer, but it is very cheap, we would consider the dividend very secure, and it is priced already for a recession that may not even happen. We would not expect miracles here, but as rates fall it could do better. In terms of expected growth, consensus calls for OK growth and we would still expect regular dividend increases.