Latest news with #Toronto-DominionBank
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2 days ago
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Is TD Bank Stock a Good Buy in June 2025?
Written by Adam Othman at The Motley Fool Canada Canadian bank stocks have been off to an impressive start despite all the fears that trade tension-induced panic due to tariffs might bring the Canadian economy into recession. Right now, there's a pause on tariffs, and the recession feared to be inevitable has yet to come around. As we move closer to the halfway mark of 2025, the S&P/TSX Composite Index only seems to be climbing to new all-time highs. Positive movement in the Canadian benchmark index reflects a broader picture of the Canadian stock market and, in turn, the economic situation. With the index reaching newer heights, it seems that the so-called top Canadian bank stocks have become quite the leaders, driving the market upward. In light of this development, we will take a closer look at one of the biggest bank stocks to determine whether it might be a good investment at current levels. Toronto-Dominion Bank (TSX:TD) has been quite a comeback story over the last few years. The reason I want to focus on TD Bank stock is its remarkable performance despite all the trouble it faced with American regulators. The $164 billion market-cap stock faced regulatory action in the US due to the bank's money-laundering fiasco last year. The restrictions and penalties imposed on it had a negative impact on the bank's performance in the stock market, but it is making remediations. The financial institution has new managers aboard, and it has revisited its growth plan. These factors are major contributors to the stock's performance in the last few weeks. The bank has paid all the fines it was supposed to, and it will settle with the asset cap on US-based assets. The bank is also selling off some of its non-core assets to improve its liquidity position. Greater liquidity can mean more spending money for the bank to make big moves. However, it remains to be seen what the new CEO of the bank will consider doing with the newly refreshed war chest. The bank is playing the long game in the US market, but its US-market-based growth will face significant restrictions for a few years to come. TD Bank's operations in the US market might be slower now, but that doesn't mean there is no growth potential in the domestic side of things. The extra money that the bank amasses from the sale of non-core assets can be valuable for any planned acquisitions or other growth-focused decisions the bank makes. As of this writing, TD Bank stock trades for $95.22 per share and distributes $1.05 per dividend per share each quarter to its investors, translating to an annualized 4.4% dividend yield. Suppose you're looking for a reliable dividend stock that is fundamentally strong and supports regular dividends. In that case, TD Bank might be an excellent pick to consider for your self-directed investment portfolio. The post Is TD Bank Stock a Good Buy in June 2025? appeared first on The Motley Fool Canada. Before you buy stock in TD Bank, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and TD Bank wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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5 days ago
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TD report calls into question Liberal housing plan's promise of 500,000 housing starts a year
The Liberal government was elected on an ambitious housing plan that promises to build about 500,000 new homes a year, but a report by Toronto-Dominion Bank released on Tuesday said the proposed policies will fall short of achieving that objective. 'Policies reviewed so far are likely to fall well short of closing the gap between the roughly 210,000 completions that Canada averages yearly, and the federal government's goal of getting to 500,000 units delivered over the next decade,' the report said. The Liberal housing plan, sold as Canada's most ambitious since the Second World War, promises several initiatives to kick-start housing construction, including cutting the GST for first-time homebuyers for new homes at or under $1 million, lowering development charges and reviving a 1970s program called the Multiple Unit Residential Building (MURB) program, which will provide more tax incentives for purpose-built rentals. 'All told, these measures could lift housing starts by some 15,000 to 20,000 units above our baseline,' the report said. 'However, the impact could be more apparent over the medium term.' Rishi Sondhi, economist at TD and author of the report, said the target for housing starts could fall to 400,000 units a year for housing affordability to be restored to pre-pandemic levels. 'When the pandemic hit you saw house prices soar across Canada and that really eroded affordability, so to get to conditions where they were before the pandemic struck, you need 400,000 units,' he said. 'Which is probably a more reasonable affordability backdrop, but it's not the most pristine Canada has ever seen, which was maybe more the early 2000s.' In the short-term, the report estimates housing starts will actually decline in 2026 to 215,000, from the 245,000 housing starts recorded in 2024. There are a number of factors playing out in the economy that are having an impact on the slowing in housing starts. They include slower population growth, oversupply in the Toronto condo market, rising construction costs and economic uncertainty. Another big challenge to hitting the target for housing starts is the labour supply in the construction industry, which is set to shrink over the next decade as a number of employees hit retirement age. Canada's residential construction sector employs 600,000 people, according to estimates by the Government of Canada. A report by BuildForce Canada published last year estimates the construction industry's workforce would have to grow to just under 1.04 million workers to close the housing gap. 'In fact, industry estimates project a 108,000 shortage in Canada's construction industry by 2034 after accounting for workforce needs and retirements,' the report said. 'At current productivity levels, getting to 400,000 completions per year in 10 years would require Canada's residential construction workforce to expand by 16 per cent each year.' Sondhi said this labour shortage issue will be compounded by ambitious infrastructure projects planned by federal and provincial governments, which means residential construction and infrastructure projects will be competing for the same workers. Sondhi said it is difficult to model out the number of housing starts that will result from the additional measures in the Liberal housing plan including reducing red tape, fast-tracking approvals and leveraging preapproved, standardized housing designs across the country. 'Even here, the stuff that isn't modelled out is probably not going to be enough to close the gap on its own,' said Sondhi. One policy initiative in the federal government's housing plan that could boost supply to hit its target, Sondhi said, is billions in financing promised for prefabricated homebuilders in Canada, which will be administered under a newly created federal housing entity called Build Canada Homes. Canada's national housing strategy remains 'under construction' Tariffs set to slow pace of homebuilding in Canada The report highlights other jurisdictions, such as Japan and Sweden, where prefabricated homebuilding was adopted to help boost housing supply in those countries. Research has estimated modular housing could speed up construction timelines by 50 per cent and cut costs by 20 per cent, according to the report. 'My stance is that it would have to play an important role if the government is going to hit its target, because the other things outside of this are not going to do the trick,' said Sondhi. • Email: jgowling@
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7 days ago
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Should You Buy Citigroup While It's Below $76?
Citigroup is one of the largest banks in the world. The company ran into serious trouble during the Great Recession. You can do better than Citigroup's 3% yield. 10 stocks we like better than Citigroup › Citigroup (NYSE: C) is one of the best-known banks in the United States and probably the world. But it doesn't have the best history when it comes to dealing with adversity, given its less-than-impressive performance during the Great Recession. Even though it is a much different company today than it was back then, investors can probably do better. Here's why and how. Citigroup is a bank, providing basic financial services to consumers and businesses. This is the core of its business. However, it also operates in the investment banking, wealth management, and markets spaces. The business is not significantly different from any of its largest peers, though it is important to note that Citigroup is more than just a simple bank. That said, it is just as important to take a little historical journey with Citigroup. That's because it allowed itself to get caught up in the housing market meltdown that happened during the Great Recession. It was forced to take a government bailout, and it cut its dividend. Neither the share price nor the dividend are back to the levels seen prior to the Great Recession. So nearly 15 years after the event, shareholders are still deeply underwater. To be fair, Citigroup is not the same company it was back then. It is more financially secure and is being operated more prudently. And yet the stock price has bumped repeatedly up against the $76 or so price level over the past decade only to fall back lower. With the stock price back up near that level, should investors buy on the hope that it will break through what appears to be an emotionally-driven price cap? The first concern that investors should probably have right now is related to the U.S. economy. There are legitimate worries that current tariff and tax policies could lead to a period of weakness. If that includes a recession, Citigroup stock will probably head lower again. That said, it seems unlikely that a recession will have the same impact on the business as did the Great Recession. So this risk is legitimate, but probably not something that should stop you from buying Citigroup in and of itself. That's where another important factor comes up -- the dividend. Citigroup currently offers a yield of around 3%. The average bank is yielding around 2.7%. That's a clear yield advantage, but you can actually do better if you buy Toronto-Dominion Bank (NYSE: TD) and its 4.4% yield. Given that one of the key reasons to buy Citigroup is the dividend, this is an important comparison to consider. One big difference between these two equally large North American banks is that TD Bank, as it is more commonly known, didn't cut its dividend during the Great Recession. That's because Canadian banks like TD Bank face more rigid regulations in their home market and, thus, tend to operate with more conservative business models. And that is an important fact to consider today because TD Bank is suffering through a self-imposed wound. TD bank's U.S. business was used to launder money. It paid a large fine, is working to upgrade its internal controls, and is under an asset cap until regulators are happy with the new controls. Its core Canadian business is unaffected by the asset cap (which effectively means the U.S. business can't grow until the cap is lifted) but overall growth will be slower for a few years than it has been historically. The U.S. business was expected to be TD Bank's growth engine. This is not good news, but it will likely pass in time. And that's the opportunity because investors have reacted by dumping TD Bank's stock. This has pushed the yield up toward historical highs and created a long-term opportunity for dividend investors (and turnaround investors). Investors can take comfort in the fact that, despite the headwinds, TD Bank increased its dividend yet again at the start of 2025. It was a modest hike, but the point of the increase was to signal that the bank was down, but not out. There's nothing inherently wrong with Citigroup. Investors probably wouldn't be making a huge mistake to buy it even as it bounces up against a stock price ceiling it has hit several times before. But with a yield of around 3%, investors can do much better with TD Bank and its 4.4% yield and turnaround potential as it recovers from a self-inflicted wound. While economic concerns will impact both of these large banks, TD Bank appears to offer more opportunity for income and capital appreciation today. Before you buy stock in Citigroup, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Citigroup wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Should You Buy Citigroup While It's Below $76? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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28-05-2025
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Watch 4 Stocks That Recently Declared Dividends Amid Market Volatility
U.S. stocks have rebounded over the past month after a turbulent first few months of 2025, as sweeping tariffs announced by President Donald Trump and high inflation raised concerns about the economy's health. However, even the recent rebound hasn't been smooth, as markets have repeatedly turned volatile due to multiple factors that continue to erode consumer sentiment. Investors still lack clarity over the impact of tariffs once they come into effect after negotiations and the Federal Reserve's next move with its rate cut plans. Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are The Toronto-Dominion Bank TD, Marriott International, Inc. MAR, Lennox International Inc. LII and Ralph Lauren Corporation RL. Trump imposed hefty tariffs in April on every trading partner of the United States, and especially targeted China, with a whopping 145% duty on its imports. In response, China fired back with its own 125% tariffs on U.S. imports. However, both nations recently agreed to a trade truce, suspending tariffs for 90 days. While this pause has somewhat eased fears of an escalating trade war, investors remain unclear about how future trade deals with China and other countries will unfold and what impact they might have on the economy. Also, investors have been on the edge due to the uncertainty over the timing of the next rate cut. Inflation has eased in recent months, with the Consumer Price Index (CPI) rising just 0.2% in April, after declining 0.1% in March for the first time since May 2020. CPI rose 2.3% in April from the year-ago levels, marking the smallest annual gain since February 2021. The April data suggests that inflation is slowly moving closer to the Federal Reserve's 2% target. However, the Fed has adopted a cautious approach and opted to keep interest rates unchanged in its May meeting. Officials also said that any decision to cut rates will come only after they are certain that inflation is declining significantly. Considering the current uncertainty, investing in dividend-paying stocks could be a smart move. Such companies tend to be more stable and reliable, often continuing to pay out dividends even amid economic fluctuations. Their ability to maintain profitability usually stems from solid business models and sound financial strategies, making them a safer option for investors seeking steady returns. In a fluctuating market, companies that pay high dividends often outperform those that do not. The Toronto-Dominion Bank is a Canadian chartered bank that offers a wide range of business and consumer services. TD's services include checking and savings accounts, credit cards, mortgage and student loans, trusts, wills, estate planning, investment management services and financial and advisory services. The Toronto-Dominion Bank has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. On May 23, The Toronto-Dominion Bank announced that its shareholders would receive a dividend of $0.75 a share on July 31. TD has a dividend yield of 4.31%. Over the past five years, The Toronto-Dominion Bank has increased its dividend 12 times, and its payout ratio presently sits at 53% of earnings. Check The Toronto-Dominion Bank's dividend history here. Marriott International, Inc. is a leading worldwide hospitality company focused on lodging management and franchising. As of March 31, 2025, MAR operated, franchised and acted as a licensor of hotels, timeshare properties and other lodging properties of 9,500 properties across 144 countries and territories under more than 30 brand names. Marriott International has a Zacks Rank #3 (Hold). On May 23, Marriott International declared that its shareholders would receive a dividend of $0.67 a share on June 30. MAR has a dividend yield of 1.04%. Over the past five years, Marriott International has increased its dividend five times, and its payout ratio presently sits at 26% of earnings. Check The Marriott International's dividend history here. Lennox International Inc. is a global leader in the heating, air conditioning and refrigeration markets. LII is a leading global provider of climate control solutions. Lennox International carries a Zacks Rank #3. On May 22, Lennox International announced that its shareholders would receive a dividend of $1.30 a share on July 15. LII has a dividend yield of 0.81%. Over the past five years, Lennox International has increased its dividend five times, and its payout ratio presently sits at 20% of earnings. Check Lennox International's dividend history here. Ralph Lauren Corporation is a major designer, marketer and distributor of premium lifestyle products in North America, Europe, Asia, and internationally. RL offers products in the apparel, footwear, accessories, home furnishings, and other licensed product carries a Zacks Rank #3. On May 22, Ralph Lauren Corporation declared that its shareholders would receive a dividend of $0.91 a share on July 11. RL has a dividend yield of 1.20%. Over the past five years, Ralph Lauren Corporation has increased its dividend three times, and its payout ratio presently sits at 27% of earnings. Check Ralph Lauren Corporation's dividend history here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Lennox International, Inc. (LII) : Free Stock Analysis Report Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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27-05-2025
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Scotiabank posts lower profit amid uncertainty related to U.S. tariffs
Bank of Nova Scotia reported slightly lower second-quarter profits as it kept aside a higher amount of money to tackle loans that may potentially go bad, which it said reflects 'the continued uncertainty related to U.S. tariffs.' Its net income for the three months ending April 30 was $2.03 billion, compared to $2.09 billion during the same period a year ago, resulting in net earnings per share of $1.48. Scotiabank's adjusted net income — which removes the impact of non-recurring items — was $2.07 billion, compared to $2.10 billion a year ago, resulting in adjusted earnings per share of $1.52, below analysts' expectations of about $1.54 per share. 'Amidst the continuously evolving economic outlook, we are focused on what we can control,' chief executive Scott Thomson said in a statement on Tuesday. 'This quarter we increased our performing allowances to reflect the impact of an uncertain macroeconomic outlook.' Scotiabank is the second of Canada's six biggest banks to release its second-quarter results, which are often considered a signpost for the country's economy. This is the first time the results will reflect the impact of the tariffs imposed by the United States on an array of Canadian exports since the levies were imposed on March 4 and the earnings cover the three-month period ending April 30. As a result, analysts are keeping an eye on the amount of money the banks keep aside to tackle loans that may potentially go bad, also known as provisions for credit losses (PCLs), which are a key credit metric for measuring the health of a bank's loan book as well as the ability of households and businesses to pay their debts. Toronto-Dominion Bank increased its PCLs to $1.3 billion last week when it reported its second-quarter earnings, up from about $1.2 billion in the previous quarter and about $1 billion a year ago. Scotiabank said on Tuesday that it increased its PCLs to $1.39 billion during the second quarter, up from $1.16 billion in the first quarter and about $1 billion a year ago. The bank also increased its provision for credit losses on performing loans, or loans that are less likely to go bad, to $346 million, compared to $98 million in the previous quarter and $32 million during the same quarter last year. Scotiabank said it 'substantially increased' its provision for credit losses on performing loans to reflect the 'impact of a significant deterioration in the macroeconomic outlook indicators in the U.S., Canada and Mexico.' The increase also reflects the 'continued uncertainty related to U.S. tariffs, mainly impacting the Canadian retail and commercial portfolios,' it said. The PCLs on impaired loans — loans that are more likely to default — increased by $77 million from a year ago to about $1.05 billion during the second quarter. However, it was lower than the $1.06 billion reported during the first, quarter mainly due to 'lower provisions in international retail in most markets,' the bank said. TD Bank to cut 2% of workforce in restructuring Scotiabank analysts rank Canada's big banks as earnings season kicks off Scotiabank's Canadian banking segment reported adjusted earnings of $613 million, down 31 per cent compared to a year ago, primarily due to the significant increase in performing credit loss allowances and lower margins, the bank said. Its international banking, global wealth management and global banking segments reported higher numbers compared to last year. • Email: nkarim@
