Last stock in the clip; he and his family also own it personally. GLTA https://www.bnnbloomberg.ca/video/andrew-pink-s-top-picks~2721765 TD Bank (TD TSX)
The second largest Canadian bank by market capitalization, TD has done a commendable job establishing a significant U.S. retail banking franchise that we expect will generate out-sized returns compared to its domestic peers over time. Despite its best efforts, TD was unsuccessful in its most recent acquisition attempt for First Horizon North, a large U.S. regional banking peer. Although not the desired outcome, with $16 billion in excess capital, the highest reserve capital of the Canadian banks, TD is well positioned to pursue other U.S. acquisitions, invest for organic growth, buy back stock and/or increase the dividend. Typically trading at a mid-single-digit premium to domestic peers, uncertainty related to this acquisition has created a rare opportunity to invest in this high-quality bank at a meaningful discount.
TOP PICK
Toronto Dominion (TD)(TD-T)
06/07/2023
Has lagged the group specifically because 30% of its business is US retail. US banking came under significant pressure in March. Plus, First Horizon deal fell through. Typically trades at a premium, but now at a discount to the group. High quality, solid dividend. Significant amount of capital of around $16B to deploy into M&A, increasing dividend, or investing in the business. Yield is 4.69%.
(Analysts’ price target is $93.66)
Banks
Andrew Pink
$81.150
Owned