10-15-2014, 10:46 AM
Thanks for the feedback on the analysis, earthtodan and Lewys.
I own BNS as well and its one of the best run banks imo. I dont have a huge position in BNS but I have a DRIP plan, so that should keep building over time.
TD is a bit of a riskier investment as they have leveraged up a lot more than the other banks. And I think that reflects in the prices. TD is a bit more underpriced than other banks like BNS, RY. Having said that, TD is not going to collapse like some of the other institutions last decade. The bank is still safe by most standards. TD has grown a lot in the last couple of years as well - they have expanded quite a bit in the credit market by buying companies like MBNA etc. and owns close to 20% of the market share. During the financial crisis, they took an initiative to expand and grow in the US and now TD has the biggest exposure to the US market than other Canadian banks (BNS and RY are more focused in Latin America).
TD's CEO Clark is retiring and the current COO is taking over as CEO starting Nov 1. Heres an article profiling the new CEO from The Globe And Mail.
The other big ones - BMO and CM are also quite stable. Cant go wrong with those investments either. NA (National Bank) wants to move up the tier to join the Big-Five, and is trying to grow outside Quebec - so its exposure is quite limited. For that reason, its considered more of a second tier regional bank and clubbed together with Laurentien Bank (also focused in Quebec), Canadian Western Bank (focused in Western Canada).
It really is a toss up and hard to pick. I am considering initiating a starter position in either TD or RY (will have to do a full analysis of RY - which I should be able to finish this weekend...so look forward to that early next week).
Fun fact: BMO is the oldest dividend payer in Canada (paid dividends since 1829) and the second oldest is BNS (paid dividends since 1832).
I own BNS as well and its one of the best run banks imo. I dont have a huge position in BNS but I have a DRIP plan, so that should keep building over time.
TD is a bit of a riskier investment as they have leveraged up a lot more than the other banks. And I think that reflects in the prices. TD is a bit more underpriced than other banks like BNS, RY. Having said that, TD is not going to collapse like some of the other institutions last decade. The bank is still safe by most standards. TD has grown a lot in the last couple of years as well - they have expanded quite a bit in the credit market by buying companies like MBNA etc. and owns close to 20% of the market share. During the financial crisis, they took an initiative to expand and grow in the US and now TD has the biggest exposure to the US market than other Canadian banks (BNS and RY are more focused in Latin America).
TD's CEO Clark is retiring and the current COO is taking over as CEO starting Nov 1. Heres an article profiling the new CEO from The Globe And Mail.
The other big ones - BMO and CM are also quite stable. Cant go wrong with those investments either. NA (National Bank) wants to move up the tier to join the Big-Five, and is trying to grow outside Quebec - so its exposure is quite limited. For that reason, its considered more of a second tier regional bank and clubbed together with Laurentien Bank (also focused in Quebec), Canadian Western Bank (focused in Western Canada).
It really is a toss up and hard to pick. I am considering initiating a starter position in either TD or RY (will have to do a full analysis of RY - which I should be able to finish this weekend...so look forward to that early next week).
Fun fact: BMO is the oldest dividend payer in Canada (paid dividends since 1829) and the second oldest is BNS (paid dividends since 1832).