Business & Investment

TD Bank Stocks: Hit New Highs

The stock market continues to show strength through the pandemic crisis. To be honest, this was a surprise to many investors. Of course, it’s a great surprise. This resilience is a testament to the strength of Canada’s economic policy and financial system. When talking about resilience, I can’t think of a better example than a Canadian bank. Toronto-Dominion Bank (TSX: TD)(NYSE: TD)..

They overcame the financial crisis of 2008 and many earlier. Banks have survived the pandemic and continue to prosper. Keep in mind that at some point the bank’s allowance for doubtful accounts was skyrocketing as it was afraid of accelerating defaults. But in the end, Canadian banks have not only survived this recent crisis, but have continued to prosper. Some, like TD Bank stocks, have hit 52-week highs.

TD Bank Equity: Canada’s Top Banks

The first bank stock to hit a 52-week high was TD Bank. TD is one of Canada’s largest banks. It is also the fifth largest bank in North America. Throughout all that, TD Bank stands out for its strength south of the border and its success in driving efficiency. TD Bank’s stock has a market capitalization of $ 170 billion and a dividend yield of 3.3%. Inventories so far surged 32% in 2021.

This chart is a sight to see, but it also makes me nervous. TDs are not only trading at 52-week highs, but also at record highs. I think long-term economic trends support this, but I also know that there are problems with brewing in the short term. Slow loan growth and inflation. Also, the TD rating is the highest ever.

In short, TD Bank stocks are still a good investment. Since 1995, TD Bank has achieved an annual dividend growth rate of 11%.In the long run, this Dividend growth does not seem to stop. In fact, the surge in profits indicates that this growth rate could accelerate further.

I would choose my entry point wisely, but this stock is definitely a long-term keeper.

National Bank Equity: Nitchi Player Canadian Bank

National Bank of Canada (TSX: NA) It’s very different from TD Bank. The first difference is its size. The market capitalization of National Bank shares is $ 36 billion, which is 20% of the market capitalization of TD Bank. The National Bank is also very focused on Quebec. However, what the national banks lack in diversification is supplemented by their financial performance.

In fact, the bank has worked hard to close the gap with the big Canadian banks. This has been transformed into many things. For example, it has brought about a great improvement in efficiency. It also leads to significant revenue growth of almost 20% and increased dividends.

Today, national bank stocks generate a significant 2.7%. Its stock price has hit a record high. See the graph below. This indicates that the stock price is sticking out high.

National bank stocks

This reflects the bank’s restructuring program, which has achieved dramatic cost savings and increased efficiency. This also reflects the move by the National Bank to expand its wealth management sector to central and western Canada, promoting bank diversification.

Motley Fool: Conclusion

Canadian bank stocks such as the TD Bank and the National Bank are skyrocketing and breaking new ground. They remain solid stocks owned for long-term capital appreciation and dividend income.

TD Bank Stocks: Hit New Highs TD Bank Stocks: Hit New Highs

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