Friday, August 22, 2008

TD Bank

I bought this bank (TSX-TD) in 2000. Since that time, I have made an average annual return of 10%. Over the last 5 years, I have made a return of 14.7% per year. I have not made any money over the last year, but this is to be expected, considering we have been in a bear market.

The following values are all for the last 5 years to October 31, 2007, which is the last annual statement date. The Revenues have increased at 8.6% per year, and this is not bad. The increase in Earnings per Share (EPS) has been a great 17.8% per year and the increase dividends has been a very good number at 13.5% per year. The closing price has increased at the rate of 22.7% per year. This is different from my figures above, as my figures in the first paragraph are from Quicken and they are figures to date.

The Asset/Liability Ratio is at 1.05 and this is normal for a bank. The Return on Equity (ROE) is good at 18.6% for 2007 and this is higher than the 5 year average of 16.7%. The Accrual Ratio is not bad at 3.3%. Dividends have raised the 5 year average return by over 3%.

Over all this has been a good investment for me. Any investment that can give you a return of 10% over the long term is a very good investment.

TD bank is a bank with a full range of financial products and services for individuals and corporations in Canada and USA. Its web site is See my spreadsheets on this company at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on web site.

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