Q: May I please have your opinion of TD as a purchase at the current price?
With appreciation.
Ed
With appreciation.
Ed
5i Research Answer:
TD, like any stock, is not risk-free, but it is cheap at 10X earnings and offers a 5.17% dividend yield that we would consider quite secure. Decent earnings growth is expected over the next two years, and lower interest rates could help sentiment. The dividend was raised in November. TD has the most exposure to the US of Canadian banks, and the US economy remains stronger than Canada's. We would be comfortable buying today.