The Toronto-Dominion Bank (the Bank) operates as a bank in North America. The Company’s segments include Canadian Retail, U.S. Retail, Wholesale Banking and corporate.
TSE TD – Canadian Dividend aristocrat
TD trades in the Toronto Stock Exchange (TSE). TD is a dividend artistocrat stock with 10 years consecutive dividend increases!. The list of Canadian ”Dividend Aristocrats” stocks is managed by the firm Standard and Poors. The index is titled the S&P Canadian Dividend Aristocrats. It requires a minimum of 5 years of successive dividend increases. For the full list of Canadian Dividend Aristocrats stocks, please follow the link here.
TSX: TD Stock analysis
Strenghts
– Cross-border diversification. TD continues to expand in the US market. The latest trend is the announcement of a merger agreement that will unite TD and First Horizon. The deal will still need to obtain approval from US regulators. Following this merger, TD will be the sixth-largest bank in the US!
– Cost synergies expected from TD and Fisrt Horizon merger;
– Gorwth opportunities in the US retail market;
– 10 consecutive years of dividend increases.
Weaknesses:
– TD’s premium leisure and travel-oriented credit card business has been weak during the pandemic;
– The pandemic negatively impacted the growth in both personal and business lowns segments;
– Competition from both large banks and fintech companies.
TSE TD – Dividend profile
TD stock offers an attractive yield. The dividend is safe as the pay out ratio is low. The bank increased its dividends for 10 consecutive years which is a sign of a solid financial situation.
The dividend growth in the past five years was 7.91%. This is really good news for any investor. The continuous increase in dividends helps investor cope with the impact of inflation.
The Beta is a measure of volatility. TD’s Beta is less than 1 meaning the stock is less volatile than the overall market.
The Bank witnessed both growth in earnings and revenues in the past 5 years. So, the increase in dividend was supported by actual growth in the banks revenues.