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Doubled my position in TD...recent weakness has it yielding over 5%.
I had been looking at TD. Was surprised that it had that high a yield. Which of course means stock price down compared with other majors like RBC. Maybe because of high US exposure?
 

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I had been looking at TD. Was surprised that it had that high a yield. Which of course means stock price down compared with other majors like RBC. Maybe because of high US exposure?
Banking is generally seen as dangerous these days due to the possibility of high loan losses and economic weakness. I would expect high yields on all banks.

The Federal Reserve has extended its restriction on bank dividend payments. Dividends remove critically important cash from the bank's capital, and run the risk of depleting capital. If the downturn persists, then banks would end up with insufficient capital and would be forced to tighten credit. It would also cause losses for shareholders as they raise more capital.

When you look at the Canadian banks just keep in mind that they are not being particularly cautious with their capital position. If the economic downturn continues, and if we get a true depression, they may have insufficient capital. At that point you might get dividend cuts or a drop in share price as the banks are forced to recapitalize.

CERB and other stimulus has been smoothing things over and preventing people from defaulting on loans. If those stimulus measures end, the bank's loan books will deteriorate and possibly implode.
 

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I had been looking at TD. Was surprised that it had that high a yield. Which of course means stock price down compared with other majors like RBC. Maybe because of high US exposure?
I like RY & TD,their US exposure is a huge plus as Trudeau is working hard to make our currency worthless. Anytime their yield is over 5% gets me interested.
 

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When you look at the Canadian banks just keep in mind that they are not being particularly cautious with their capital position.
Canadian banks are part of most heavily regulated banks in the world and considered as the safest in the world. There may be some short term volatility, but I doubt and on the long term it's a no-brainer buy in my opinion.

I always thought that if I fear buying a Canadian bank, then I should fear the whole Canadian market and should not invest in Canadian stocks. I see them as the lowest risk investment out of the entire Canadian stocks.

We could talk about how safe (or not safe) Canadian banks are in this thread : Safest stocks
 

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I decided to take the plunge on SU. Hopefully it will be able to rebound.

Also bought myself some TCL.A. They're a printing company which doesn't seem like a growth industry but their numbers say otherwise. We'll see how it goes.
 

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Discussion Starter #232
Nice. My order for TD missed the daily low by 3 cents.
Today the order filled at 58.33. Long term hold. Now my largest Canadian bank holding followed by BNS, BMO, RY and CWB. May still be a bit under weight financials but am happy with the current allocation. May deploy more cash in November depending on the US election turmoil and fallout. Perhaps this has already been priced into current market. Currently sitting at 10% cash in my equity portfolio with some addtional GIC money(would bring this up to 15%) sitting in cash waiting to move over from my financial institution should the need arise.
 

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I had been looking at TD. Was surprised that it had that high a yield. Which of course means stock price down compared with other majors like RBC. Maybe because of high US exposure?
Is TD making money right now? I think they had a loss recently, but I'm not selling. Never fear.
 

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I'd like to buy some more BABA, but I ran out of cash.
 

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Watching TRP, regardless if the pipeline is approved I am thinking under $50 would be a buy for a long term dividend hold. Who knows for sure but maybe the decision to cancel the pipeline is already being reflected in the current price?
 
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