TD Bank powers through COVID

Article Excerpt

Even with the economic disruption brought on by COVID-19, we like the long-term prospects for investors in TD Bank. This Canadian big bank was as well prepared—and well capitalized—to handle the pandemic as it was the 2008-2009 financial crisis. We still see TD Bank as a top pick, especially given its expanding and profitable U.S. businesses and the resilience of its well-diversified revenue stream. TD BANK $85.23 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $153.3 billion; TSINetwork Rating: Above Average; Dividend yield: 3.7%; www.td.com) is a buy. It reported higher earnings in the latest quarter as it sharply cut its loan-loss provisions. For those three months ended January 31, 2021, TD earned $3.38 billion, or $1.83 a share. That was up 10.1% from $3.07 billion, or $1.66 a share, a year earlier. Revenue increased 1.9%, to $10.81 billion from $10.61 billion. The bank’s overall loan-loss provisions fell 65.9%, to $313 million from $919 million. Its loans to businesses most vulnerable to…