Toronto-Dominion Bank
ISHARES S&P/TSX 60 INDEX ETF $20.99 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets.
The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.3%; Bank of Nova Scotia, 5.7%; CN Railway, 4.7%; Suncor Energy, 3.9%; Bank of Montreal, 3.8%; Valeant Pharmaceuiticals, 3.8%; Enbridge, 3.7%; BCE, 3.2%; Manulife Financial, 2.9%; TransCanada Corp., 2.9%; CIBC, 2.9%; Canadian Natural Resources, 2.8%; CP Rail, 2.5%; and Potash Corp., 2.5%.
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The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.3%; Bank of Nova Scotia, 5.7%; CN Railway, 4.7%; Suncor Energy, 3.9%; Bank of Montreal, 3.8%; Valeant Pharmaceuiticals, 3.8%; Enbridge, 3.7%; BCE, 3.2%; Manulife Financial, 2.9%; TransCanada Corp., 2.9%; CIBC, 2.9%; Canadian Natural Resources, 2.8%; CP Rail, 2.5%; and Potash Corp., 2.5%.
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BANK OF NOVA SCOTIA $63.67 (Toronto symbol BNS; Shares outstanding: 1.2 billion; Market cap: $77.3 billion; TSINetwork Rating: Above Average; Dividend yield: 4.2%, www.scotiabank.com) was our #1 pick for 2014.
The stock hit a high of $74.93 in November 2014. It has moved down lately with stock markets, but it’s still up almost 8%, including dividends.
Bank of Nova Scotia is the third-largest of Canada’s five big banks, with $805.7 billion of assets.
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The stock hit a high of $74.93 in November 2014. It has moved down lately with stock markets, but it’s still up almost 8%, including dividends.
Bank of Nova Scotia is the third-largest of Canada’s five big banks, with $805.7 billion of assets.
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ISHARES MSCI CANADA INDEX FUND $24.49 (New York symbol EWC; buy or sell through brokers; ca.ishares.com) holds the stocks in the Morgan Stanley Capital International Canada Index. The fund has a 0.48% MER and yields 1.7%.
The index’s top holdings are Royal Bank, 7.7%; TD Bank, 7.1%; Valeant Pharmaceuticals, 5.6%; Bank of Nova Scotia, 4.9%; CN Railway, 4.4%; Suncor Energy, 3.7%; Bank of Montreal, 3.5%; Enbridge, 3.1%; and Manulife Financial, 3.0%. If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index ETF (see previous page). You’ll pay about a third of the management fees.
We don’t recommend the iShares MSCI Canada Index Fund.
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The index’s top holdings are Royal Bank, 7.7%; TD Bank, 7.1%; Valeant Pharmaceuticals, 5.6%; Bank of Nova Scotia, 4.9%; CN Railway, 4.4%; Suncor Energy, 3.7%; Bank of Montreal, 3.5%; Enbridge, 3.1%; and Manulife Financial, 3.0%. If you want to own a Canadian index fund, you should buy the iShares S&P/TSX 60 Index ETF (see previous page). You’ll pay about a third of the management fees.
We don’t recommend the iShares MSCI Canada Index Fund.
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ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $22.48 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highestyielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of the ETF’s assets. The fund’s MER is 0.55%, and it yields 4.3%.
The fund’s top holdings are CIBC, 9.7%; Bank of Montreal, 6.8%; Royal Bank, 6.5%; BCE, 5.8%; Bank of Nova Scotia, 5.5%; Laurentian Bank of Canada, 5.0%; Rogers Communications, 4.5%; Manitoba Telecom, 4.4%; TD Bank, 4.4%; National Bank, 4.1%; IGM Financial, 4.0%; and Emera Inc., 3.8%.
The ETF holds 53.7% of its assets in financial stocks. The top Canadian finance stocks have sound prospects, but if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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The fund’s top holdings are CIBC, 9.7%; Bank of Montreal, 6.8%; Royal Bank, 6.5%; BCE, 5.8%; Bank of Nova Scotia, 5.5%; Laurentian Bank of Canada, 5.0%; Rogers Communications, 4.5%; Manitoba Telecom, 4.4%; TD Bank, 4.4%; National Bank, 4.1%; IGM Financial, 4.0%; and Emera Inc., 3.8%.
The ETF holds 53.7% of its assets in financial stocks. The top Canadian finance stocks have sound prospects, but if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
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ISHARES S&P/TSX 60 INDEX ETF $20.47 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.18% of assets, and the units yield 3.1%.
The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.7%; Valeant Pharmaceuticals, 6.0%; Bank of Nova Scotia, 5.6%; CN Railway, 4.7%; Suncor Energy, 4.0%; Bank of Montreal, 3.7%; BCE, 3.6%; Enbridge, 3.3%; Manulife Financial, 3.2%; CIBC, 3.0%; Brookfield Asset Management, 2.8%; and TransCanada Corp., 2.4%.
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The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.7%; Valeant Pharmaceuticals, 6.0%; Bank of Nova Scotia, 5.6%; CN Railway, 4.7%; Suncor Energy, 4.0%; Bank of Montreal, 3.7%; BCE, 3.6%; Enbridge, 3.3%; Manulife Financial, 3.2%; CIBC, 3.0%; Brookfield Asset Management, 2.8%; and TransCanada Corp., 2.4%.
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Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or subindex. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....
TD BANK $51.38 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $94.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.0%; www.td.com) is Canada’s largest bank, with $1.1 trillion of assets. It operates 1,305 branches in the U.S.—compared to 1,166 in Canada—and owns 41.01% of TD Ameritrade (New York symbol AMTD), a leading online brokerage.
Excluding one-time items, TD’s earnings per share rose 4.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $1.20 from $1.15. Revenue gained 6.6%, to $8.0 billion from $7.5 billion.
The bank’s Canadian and U.S. retail operations are profiting from stronger growth in both loans and deposits. Meanwhile, its focus on customer service and online banking is helping it attract and hold on to depositors. Lower gasoline prices also give consumers more cash to repay loans, cutting TD’s overall loan losses.
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Excluding one-time items, TD’s earnings per share rose 4.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $1.20 from $1.15. Revenue gained 6.6%, to $8.0 billion from $7.5 billion.
The bank’s Canadian and U.S. retail operations are profiting from stronger growth in both loans and deposits. Meanwhile, its focus on customer service and online banking is helping it attract and hold on to depositors. Lower gasoline prices also give consumers more cash to repay loans, cutting TD’s overall loan losses.
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: Building on strategic acquisitions and a strong financial position, we see Metro Inc. as a top growth stock among Canada’s consumer giants.
Toronto-Dominion Bank has a strong presence in the U.S., with more branches there than in Canada. The bank continues to gain from an improving American economy, while the weak Canadian dollar enhances the rising earnings it’s seeing from the U.S. TD’s latest acquisition in that country also adds to its prospects. TD BANK $51.38 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $94.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.0%; www.td.com) is Canada’s largest bank, with $1.1 trillion of assets. It operates 1,305 branches in the U.S.—compared to 1,166 in Canada—and owns 41.01% of TD Ameritrade (New York symbol AMTD), a leading online brokerage. Excluding one-time items, TD’s earnings per share rose 4.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $1.20 from $1.15. Revenue gained 6.6%, to $8.0 billion from $7.5 billion....
TORONTO-DOMINION BANK, $52.91, Toronto symbol TD, reported that its earnings rose 5.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $2.3 billion from $2.2 billion a year earlier. Earnings per share rose at a slower rate of 4.3%, to $1.20 from $1.15, on more shares outstanding. These figures exclude several unusual items, such as investment gains and a recovery of costs related to a lawsuit settlement. On that basis, the latest earnings beat the consensus estimate of $1.18. Earnings at the Canadian banking division (63% of the total) rose 7.9%, thanks to strong loan demand and gains from its wealth-management and insurance businesses. The U.S. banking division’s earnings (27%) jumped 16.5%, largely because the low Canadian dollar enhanced this business’s profits. The wholesale banking division (10%) saw its earnings rise 10.6% on higher trading volumes, stronger demand for corporate loans and higher advisory fees on mergers and acquisitions....