Q: Hello 5i
TD Canada Trust has a net operating cash flow of -31,114,000 $. Its free cash flow is -33,078.000 $. The total dividends paid is 8,298,000 $. The total liability is 1,844,917,000$. Are we in trouble? I would tend to keep it if dividends hold, otherwise look for something else. I also have BNS and it seems to be recovering as is TD. As you keep advising, best policy is do nothing. Does this still hold for these? I have a ten year + time frame and am a value investor at 76 years young and do not now need ready cash.
TD Canada Trust has a net operating cash flow of -31,114,000 $. Its free cash flow is -33,078.000 $. The total dividends paid is 8,298,000 $. The total liability is 1,844,917,000$. Are we in trouble? I would tend to keep it if dividends hold, otherwise look for something else. I also have BNS and it seems to be recovering as is TD. As you keep advising, best policy is do nothing. Does this still hold for these? I have a ten year + time frame and am a value investor at 76 years young and do not now need ready cash.
5i Research Answer:
Operating cash flow of banks can vary widely on an annual basis, due to the nature of their business. Last year, the big swing resulting in negativity was due to negative cash flow from 'other operating assets/liabilities' . No dividend is guaranteed, but we would be exceptionally shocked if TD were to cut their dividend. The weakness in the stock likely stems more from its money-laundering issues rather than its operating results. It has recovered $4/share from its low of June. For an investor with 10 years we would not see the need to make any moves here.