Toronto-Dominion Bank

We’ve long advised Canadians own two or more of the Big Five bank stocks—Scotiabank, BMOl, CIBC, TD and RBC—because of their dividends

BMO S&P/TSX CAPPED COMPOSITE INDEX ETF $33.69 (Toronto symbol ZCN; TSINetwork ETF Rating: Conservative; Market cap: $9.8 billion) tracks the S&P/TSX Capped Composite Index. The index includes over 200 top-ranked Canadian stocks that represent more than 90% of the Canadian equity market....

The Canadian economy ranks among the top 10 globally and is considered to be in the top 20 of the world’s most competitive economies. Notably, the prosperity of our country’s economy is highly dependent on exports to the U.S., its main trading partner. That means tariffs imposed by the U.S....

Dividend-paying companies have done well over the longer term, although the recent performance of this group lagged the main market indexes. That’s because higher interest rates on fixed-income investments made their dividends less attractive to income investors....

TD CANADIAN EQUITY INDEX ETF $26.59 (Toronto symbol TTP; TSINetwork ETF Rating: Conservative; Market cap: $1.9 billion) invests in large and medium-sized publicly listed Canadian companies.


The ETF aims to track the Solactive Canada Broad Market Index.


The fund currently holds 276 stocks; the largest segment weighting is allocated to Financial companies (31%), followed by Energy (17%), Basic Materials (14%) Technology (8%), and Industrials (7%).


The top 10 holdings make up 34% of its assets....

TD 1ST PREFERRED CLASS A SERIES 1 $24.54 (Toronto symbol TD.PF.A) is a preferred share issue from TD Bank (Toronto symbol TD).


The TD Series 1 Preferred yields 3.8%. That’s lower than the 5.1% offered by the bank’s common shares.


Note, though, that preferred shares behave more like long-term fixed-income instruments than they do short-term instruments....

In response to rising interest rates, TD Bank had to set aside more funds to cover potential loan defaults. However, the bank remains well capitalized, which lets it reward investors with higher dividends and share buybacks.


TORONTO-DOMINION BANK $82 is a buy. The lender (Toronto symbol TD; Income-Growth Payer Portfolio; Finance sector; Shares outstanding: 1.8 billion; Market cap: $147.6 billion; Dividend yield: 5.0%; Dividend Sustainability Rating: Highest; www.td.com) is Canada’s second-largest bank by market cap after Royal Bank....

This month we feature a very high-yielding financial services ETF from Hamilton Capital Partners, and a top-performing North American value equity ETF from RBC.


HAMILTON CANADIAN FINANCIALS YIELD MAXIMIZER ETF $13.12 (Toronto symbol HMAX) invests in the top 10 Canadian financial services companies as measured by their total market value....

The Canadian economy ranks among the top 10 globally. It’s also considered to be in the top 25% of the most competitive economies in the world; it is highly rated for its ability to train and attract skilled workers.


However, after solid growth in 2021 to 2022, higher interest rates have slowed the domestic economy down—although elevated oil and gas prices are providing a measure of support.


We still recommend that most Canadians hold the bulk of their portfolios in dividend-paying Canadian stocks, or ETFs that hold those stocks....

Higher interest rates mean dividend-paying stocks must increasingly compete with fixed-income investments for investor interest. However, sustainable dividends still offer an attractive and growing income stream for investors.


Meanwhile, dividend-focused ETFs often follow strategies that can set investors up for maximum long-term gains with the least amount of risk....