The Successful Investor, in the February, 2020, issue, refreshes its buy of Toronto-Dominion Bank, recently $73. The Investor said buy 38 times from February, 1996, to September, 2019, at prices ranging from $25 to $91 (the stock split 2 for 1 in July, 1999, and again in February, 2014). Assuming a $1,000 investment for each of the 38 buys, the $38,000 position is now worth a pleasing $114,099. TD Bank is one of Canada's Big Five banks. The Investor has long advised readers to own two or three of these banks, given their low price/earnings ratios and dependable dividends. It currently likes TD Bank and Scotiabank the best. In this update, the Investor highlights TD Bank's 43-per-cent interest in TD Ameritrade Holding, a U.S. on-line brokerage firm. TD Ameritrade recently agreed to merge with top competitor Charles Schwab. Following the merger, TD Bank will own 13.4 per cent of the combined company, with Schwab's investors holding 69 per cent (the rest will be held by TD Ameritrade's other owners). The Investor approves of the merger and says it should boost the value of TD Bank's investment. The bank now trades at just 10.6 times its forecast 2020 earnings of $6.87 a share, and its dividend yield is 4.1 per cent. Buy.
© 2020 Canjex Publishing Ltd. All rights reserved.