Monday, December 8, 2008

TD Bank

I am reviewing this bank today as its annual statement for 2008 has been published. The Toronto-Dominion (TSX-TD) is on Mike Higgs’ list at, on the Dividend Achievers list at, and on the Dividend Aristocrats list at (see indices). This bank has done much better than the Bank of Montreal and slightly better than the Bank of Nova Scotia. I reviewed both of these banks last week.

I look at different criteria for the last 5 and 10 years prior to the Annual Statement date of October 2008. The revenue on this bank has been increasing over the last 5 and 10 years, both when looked at as absolute revenue increase and revenue per share. The Earnings per Share (EPS) is also increasing, but when considering the 5 year increase, you also have to realize that it looks so good because of the problems in earnings during the last bear market.

The one thing that I really like is the increase in dividends over the last 5 and 10 years. This bank increased it dividends, as per recent normal practice, twice this year. This is the reason to buy banks, the increasing dividend income you receive. Also, the Profit Margin and Return on Equity (ROE) is good on this bank.

The negatives I see are that the Accrual Ratio is high at 9.7% and, of course, the stock price has come down significantly. Of course, all stock prices have come down during the current bear market.

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

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