Latest news with #TorontoDominionBank
Yahoo
4 days ago
- Business
- Yahoo
1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now
Investors often take on more risk than they realize when buying high-yield dividend stocks. AGNC Investment has a massive 16% dividend yield. Toronto-Dominion Bank has a more sustainable and reliable 4.5% yield. 10 stocks we like better than AGNC Investment Corp. › If you have $1,000 to invest and are looking for high-yield stocks, you might be tempted to try to maximize income. You could do that with the purchase of a stock like AGNC Investment (NASDAQ: AGNC), which has a huge 16%+ dividend yield. Here's why it would be a no-brainer to buy Toronto-Dominion Bank (NYSE: TD) instead, despite a much lower yield. AGNC Investment is a mortgage real estate investment trust (REIT), a fairly complicated niche of the REIT sector. The company buys mortgages that have been rolled up into bond-like securities. The goal is to make the difference between the interest it collects on the securities it buys and its operating costs. The REIT uses leverage in an attempt to enhance returns, and that huge 16%+ yield isn't actually as attractive as it seems. As the chart below highlights, AGNC Investment's dividend has been in decline for years after a brief jump following its initial public offering (IPO). The share price has tracked along with the dividend, jumping after the IPO and then steadily declining. Technically speaking, investors have made out OK because AGNC Investment has paid out more in dividends than it has lost in share price. But that's a nuanced view of things. Most dividend investors are looking to own stocks that have stable to growing dividends and stable to growing stock prices. Reaching for yield with AGNC Investment is likely to leave you with a bad taste in your mouth if you need income to pay for living expenses. Toronto-Dominion Bank, or TD Bank for short, is a much more reliable dividend stock. Yes, the 4.5% yield is much lower, but the dividend hasn't been cut regularly, even during hard times. For example, TD Bank didn't have to reduce its dividend during the Great Recession like many of its U.S. peers. And it increased the dividend at the start of 2025, despite facing some company-specific troubles. While TD Bank's dividend yield is lower than that of AGNC Investment, it is actually high in other ways. For starters, it's high relative to the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC). It is high relative to the finance industry's 2.7%, and it is historically high for TD Bank. In fact, the last time the dividend was as high as it is today was during the Great Recession and the coronavirus pandemic's height. In other words, TD Bank is offering an attractive yield. The dividend is so high because TD Bank's U.S. business has weak internal controls against money laundering and it was used for that purpose. U.S. regulators were not pleased and have barred the company from growing in the U.S. market until they're satisfied that the internal control weakness is resolved. TD Bank's large and diversified Canadian business is still doing just fine, but the U.S. division was expected to be the bank's growth engine. It could take a few years to resolve this issue, and investors have shunned the stock because of this. Only TD Bank remains a strong financial institution with little risk of a dividend cut. In fact, the bank reported second-quarter 2025 earnings that beat Wall Street expectations. In other words, the business is managing well even in the face of adversity. It is, at the end of the day, a relatively low-risk and still high-yield turnaround play. If you think you've found a dividend stock that will provide you with a reliable income stream with AGNC Investment, well, history suggests you could be in for a very bad surprise. If you temper your income expectations and buy TD Bank right now, however, you'll likely be setting yourself up for years of reliable dividends and a stock price recovery as it works through its company-specific headwinds. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 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. 1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now
Investors often take on more risk than they realize when buying high-yield dividend stocks. AGNC Investment has a massive 16% dividend yield. Toronto-Dominion Bank has a more sustainable and reliable 4.5% yield. 10 stocks we like better than AGNC Investment Corp. › If you have $1,000 to invest and are looking for high-yield stocks, you might be tempted to try to maximize income. You could do that with the purchase of a stock like AGNC Investment (NASDAQ: AGNC), which has a huge 16%+ dividend yield. Here's why it would be a no-brainer to buy Toronto-Dominion Bank (NYSE: TD) instead, despite a much lower yield. AGNC Investment is a mortgage real estate investment trust (REIT), a fairly complicated niche of the REIT sector. The company buys mortgages that have been rolled up into bond-like securities. The goal is to make the difference between the interest it collects on the securities it buys and its operating costs. The REIT uses leverage in an attempt to enhance returns, and that huge 16%+ yield isn't actually as attractive as it seems. As the chart below highlights, AGNC Investment's dividend has been in decline for years after a brief jump following its initial public offering (IPO). The share price has tracked along with the dividend, jumping after the IPO and then steadily declining. Technically speaking, investors have made out OK because AGNC Investment has paid out more in dividends than it has lost in share price. But that's a nuanced view of things. Most dividend investors are looking to own stocks that have stable to growing dividends and stable to growing stock prices. Reaching for yield with AGNC Investment is likely to leave you with a bad taste in your mouth if you need income to pay for living expenses. Toronto-Dominion Bank, or TD Bank for short, is a much more reliable dividend stock. Yes, the 4.5% yield is much lower, but the dividend hasn't been cut regularly, even during hard times. For example, TD Bank didn't have to reduce its dividend during the Great Recession like many of its U.S. peers. And it increased the dividend at the start of 2025, despite facing some company-specific troubles. While TD Bank's dividend yield is lower than that of AGNC Investment, it is actually high in other ways. For starters, it's high relative to the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC). It is high relative to the finance industry's 2.7%, and it is historically high for TD Bank. In fact, the last time the dividend was as high as it is today was during the Great Recession and the coronavirus pandemic's height. In other words, TD Bank is offering an attractive yield. The dividend is so high because TD Bank's U.S. business has weak internal controls against money laundering and it was used for that purpose. U.S. regulators were not pleased and have barred the company from growing in the U.S. market until they're satisfied that the internal control weakness is resolved. TD Bank's large and diversified Canadian business is still doing just fine, but the U.S. division was expected to be the bank's growth engine. It could take a few years to resolve this issue, and investors have shunned the stock because of this. Only TD Bank remains a strong financial institution with little risk of a dividend cut. In fact, the bank reported second-quarter 2025 earnings that beat Wall Street expectations. In other words, the business is managing well even in the face of adversity. It is, at the end of the day, a relatively low-risk and still high-yield turnaround play. If you think you've found a dividend stock that will provide you with a reliable income stream with AGNC Investment, well, history suggests you could be in for a very bad surprise. If you temper your income expectations and buy TD Bank right now, however, you'll likely be setting yourself up for years of reliable dividends and a stock price recovery as it works through its company-specific headwinds. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 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. 1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now 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
Reuters
6 days ago
- Business
- Reuters
CIBC profit rises on capital markets strength
May 29 (Reuters) - Canadian Imperial Bank of Commerce ( opens new tab reported a rise in second-quarter profit on Thursday, led by its capital markets business. U.S. President Donald Trump's shifting trade policy fueled volatility in markets and forced investors to rejig their portfolios to minimize losses, helping banks' trading desks to collect more fee income. CIBC's net income from capital markets rose 20% over the year earlier to C$566 million. Peers Toronto Dominion Bank ( opens new tab and Bank of Montreal ( opens new tab also reported a rise in quarterly income in their capital markets arms. CIBC's adjusted net income rose to C$2.02 billion ($1.46 billion), or C$2.05 per share, during the three months ended April 30, compared with C$1.72 billion, or C$1.75 per share, a year ago. ($1 = 1.3832 Canadian dollars)
Yahoo
26-05-2025
- Business
- Yahoo
TD's High Costs Hurt Q2 Results, Restructuring Plan Revealed, Stock Up
Shares of Toronto-Dominion Bank TD have risen 4.5% on the NYSE since the unveiling of its restructuring program to boost efficiency last week. Further, the company announced its second-quarter fiscal 2025 (ended April 30) company's quarterly adjusted net income of C$3.6 billion ($2.63 billion) fell 4.3% year over provisions for credit losses and expenses acted as undermining factors. Also, lower loan balances were another negative. Nonetheless, growth in net interest income ('NII') and non-interest income was positive. Adjusted revenues were C$15.1 billion ($11.02 billion), increasing 9% year over grew 8.8% year over year to C$8.13 billion ($5.91 billion). Non-interest income of C$14.81 billion ($10.78 billion) jumped 133.1%.Adjusted non-interest expenses rose 11.6% to C$7.91 billion ($5.76 billion).The adjusted efficiency ratio was 57.6 as of April 30, 2025, up from 56.1 recorded in the prior-year the reported quarter, Toronto-Dominion recorded a provision for credit losses of C$1.34 billion ($0.98 billion), which surged 25.2% from the year-ago quarter. Total assets were C$2.06 trillion ($1.5 trillion) as of April 30, 2024, down 1.4% loans declined 3% from the fiscal first quarter to C$936.4 billion ($681.6 billion) and deposits fell 1.8% to C$1.27 trillion ($0.9 trillion).As of April 30, 2025, the common equity Tier I capital ratio was 14.9, up from 13.4 as of April 30, 2024. The total capital ratio was 18.5 compared with the prior-year quarter's 17.1. TD unveiled a restructuring program to mitigate costs, which included the reduction of roughly 2% of its workforce. The bank will incur approximately C$700 million ($505 million) on a pre-tax basis to implement the plan over the next the bank anticipates pre-tax savings of about C$100 million in fiscal 2025 and annual savings of up to C$650 million beyond that. Moreover, the bank will present its revised strategy and financial targets in the Investor Day presentation on Sept. 29, 2025. Supported by a diverse geographical presence, Toronto-Dominion's efforts toward improving revenues and market share seem impressive. Relatively high interest rates, restructuring efforts and decent loan demand will also likely aid its concerns related to tough regulatory requirements following the settlement of the AML probe are expected to weigh on its financials. Further, weakening asset quality due to an uncertain macroeconomic backdrop is a headwind. Toronto Dominion Bank (The) price-consensus-eps-surprise-chart | Toronto Dominion Bank (The) Quote TD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. HSBC Holdings HSBC reported first-quarter 2025 pre-tax profit of $9.48 billion, which declined 25% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)HSBC's results were affected by a fall in revenues, higher expected credit losses and other credit impairment charges, partially offset by a fall in Bank DB reported first-quarter 2025 earnings attributable to its shareholders of €1.78 billion ($2.01 billion), up 39.2% year over results were aided by a rise in revenues and lower expenses. However, higher provision for credit losses was a spoilsport. 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 Deutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
24-05-2025
- Business
- Yahoo
Why Toronto-Dominion Bank Stock Trounced the Market Today
The Canada-based bank released its second-quarter earnings report. It beat analyst estimates for both revenue and profitability. 10 stocks we like better than Toronto-Dominion Bank › An encouraging quarterly earnings report was the catalyst sending Toronto-Dominion Bank's (NYSE: TD) stock higher on Thursday. It closed the trading session up by more than 3%, while the S&P 500 (SNPINDEX: ^GSPC) index essentially flatlined. Toronto-Dominion's total non-GAAP (generally accepted accounting principles) adjusted revenue for its fiscal second quarter of 2025 was slightly over 15.1 billion Canadian dollars ($10.9 billion), up from the CA$13.8 billion ($9.9 billion) it earned in the same frame of 2024. That was on the back of growth in both net loans and total assets, which rose by nearly 1% and almost 5% year over year, respectively. Adjusted net income went in the other direction, slipping to a bit over CA$3.6 billion ($2.6 billion) from the year-ago profit of almost CA$3.8 billion ($2.7 billion). The former figure was CA$1.97 ($1.42) on a per-share basis. Both headline fundamentals comfortably beat the consensus analyst estimates. On average, professional researchers tracking Toronto-Dominion's stock were expecting CA$13.6 billion ($9.8 billion) for revenue, and a per-share, adjusted net income figure of CA$1.83 ($1.32). In terms of its activities, the bank's largest -- Canadian personal and commercial banking -- saw a net income decline of 4%; it attributed this to higher provisioning for credit losses and noninterest expenses. Those operations saw a 3% increase in revenue, however. Meanwhile, Toronto-Dominion's U.S. retail banking unit saw its adjusted net income fall by 16% in U.S. dollar terms. The company said this was due mainly to higher governance and control expenditures. On a more positive note, Toronto-Dominion did well with its wealth management and insurance, and wholesale banking divisions -- reported net income growth for the pair was 14% and 16%, respectively. Wealth management benefited from strong inflows from institutional clients, while the latter notched a new record for revenue. Although the twin beats were satisfying, I think investors should be concerned with the company's struggles in the U.S. market. This will be the part of its operations to keep a sharp eye on going forward. Before you buy stock in Toronto-Dominion Bank, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Toronto-Dominion Bank 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 169% 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 Eric Volkman 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. Why Toronto-Dominion Bank Stock Trounced the Market Today 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
