BUY
Toronto Dominion(TD-T)
28/09/2023
TD vs. SLF vs. CM
All of the interest sensitives have been under pressure the last couple of months with rates rising.
He favours TD. Tightly regulated oligopoly, and a levered play on the growth of the Canadian, and increasingly US, economy. Surplus of excess capital. 10x earnings. Dominant personal and commercial banking franchise. Good-sized banking presence in the US. Shares are at a discount to average. Close to 5% yield, growing at 8% compound over 10 years.
Valuation and yield of SLF are similar to TD. But TD's competitive position in its industry is more advantageous than SLF.
Compared to CM, TD is more of a scale player with a stronger franchise on both sides of the border on its core banking business.
Banks
Ryan Bushell
$82.085
Owned