Toronto-Dominion Bank (TSX: TD)(NYSE: TD) It is one of Canada’s leading banks. In fact, it is also one of the leading banks in North America. This status should not escape investors. It has many advantages. And these advantages are why TD Bank Stocks are the top bank stocks to buy today.
Let’s see why you should buy TD Bank stock now without any further effort.
TD Bank stocks show its resilience
Some things became clear as TD Bank’s share price recovered from its March lows. For example, the resilience of TD Bank. Revenues in 2020 fell dramatically compared to 2019. But the overall impact of this disastrous year wasn’t as bad as it seemed. TD liquidity remained strong. And its capital adequacy ratio remained exemplary. These are important indicators of a bank’s resilience. TD is performing best on both of these indicators.
TD Bank holds the title of being the 5th largest bank in North America in terms of total assets. It also brings economies of scale to banks as the sixth largest North American bank by market capitalization. It gives the bank a geographical range. It allows banks to remain diversified. And it gives banks access to a myriad of markets. In a recovery scenario, TD Bank has access to a lot of growth.
Canadian banks like TD Bank are cautious in 2021, but optimistic about recovery
Many will be cautious in 2021 as the second wave has taken hold. And of course it is. For example, Royal Bank management envisions a fairly pessimistic 2021. TD Bank is also quite nervous about the year ahead. They admit that the next few quarters will be tough. They also acknowledge that government stimulus is key and that it has enabled good conditions today.
It’s not a good feeling to know that you are in control just because you are helped by the government. But these are the times we are.Thankfully there is help. The banking system does not fail. All stakeholders are united on this goal.
The credit loss allowance will be raised again in 2021. When the new blockade hits the economy, TD Bank will be tested again. However, Canadian banks have experienced difficult times. The financial crisis of 2008 was difficult for everyone. But Canadian banks stood out as an example around the world.
Canada’s capital restrictions on banks are tightening even more today. Therefore, TD Bank is expected to survive the crisis. And even after the crisis, TD Bank will continue to leverage its leading position in the banking industry.
TD Bank shares generate 4.3%
The Toronto-Dominion Bank stands out for its long-standing success in driving efficiency. The bank has industry-leading ROE and takes a conservative approach to mitigating risk. For example, TD Bank adheres to strict controls on lending practices. This is especially successful at bad times. And these are bad times.
Today, TD Bank stocks are showing a generous 4.3% yield. And it’s a growing dividend. Since 1995, TD Bank has achieved an annual dividend growth rate of 11%. The history of this dividend growth has not stopped.
In conclusion, we all agree that 2021 will be a tough year for banks. In fact, this year will be a tough year for most companies... However, TD Bank is well armed to survive these difficult times. Indeed, the second wave has delayed the economic recovery we have been waiting for. Nevertheless, TD Bank remains the top bank stock to buy today for dividends and growth prospects.
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Stupid contributor Karen Thomas I own a stake in TORONTO-DOMINION BANK.
TD Bank Stocks (TSX: TD): Top Bank Stocks to Buy Today
https://www.fool.ca/2021/01/30/td-bank-stock-tsxtd-the-top-bank-stock-to-buy-today/ TD Bank Stocks (TSX: TD): Top Bank Stocks to Buy Today