Monday, November 3, 2008

TD Bank 3

Since I started talking about banks to invest in, I thought I would look at all banks that are currently being suggested as a good buy. This bank, (TSX-TD) is a bank that has raised their dividends twice this year. There is also some insider selling and insider buying on this stock. There is nothing significant.

When I last looked at this stock in August 2008, the EPS estimate for the year was $4.75. However, this estimate has been lowered to $4.57. The other negative is that the Return on Equity (ROE) is likely to much lower than the 5 year average. Also, the Accrual Ratio is high at 9.3%, although banks tend to have higher accrual ratios than other companies. In the analyst ratings on this stock, they seem to be evenly divided into Strong Buys and Holds giving this stock a rating of Buy.

Not that much has happened to this stock since August. The positives are that the P/E ratio of 10.3% is below the 5 year average of 16.7%, the Yield of 4.3% is higher than the 5 year average of 3%, the current price is still below the Graham Price.

This bank is still a well run bank and, on another positive note, the number of shares have moved up because they have been doing some purchases. This bank stock is still at a good price and they have been increasing their dividends. Another good thing is that this stock has done better than the TSX Index and the TSX Financial Index both year to date and over the last year.

They are a bank with full range of financial products and services for individuals and corporations in Canada and USA. Its web site is See my spreadsheet at I am reloading my spreadsheet with the July 2008 figures.

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 my web site.

No comments:

Post a Comment