The Toronto-Dominion Bank (TD)

Some nice raises for US banks, I firmly believe when eligible $TD will raise its dividend by +20%

This is because a raise of 20% brings their DPS to $3.80 and based on their trailing EPS of $7.77 is a payout ratio of roughy 49% which is between their target of 40-50%

Their trailing EPS of $7.77 is based on 4 COVID Q’s. Their earnings per share will increase over the next 4 Q’s. it is actually not unrealistic for this DPS to be $4.20 in 2 years which is approx. 33% higher than today’s dividend.

$TD only raises once a year unlike other Canadian banks, so these large increases are not unrealistic in my opinion.

I think buying today is equivalent to buying a 2022 yield of 4.41% (DPS 3.80) and a 2023 yield of 4.90% (DPS 4.20)

Not crazy high yields, however for a company that pays out less than 50% of their earnings and has a lot to gain from raising interest rates puts them in an excellent position.

The 5 year trailing dividend average is 3.79%. based on my 2023 dividend per share projection of $4.20 that implies a share price of $111 (4.20/ 0.0379).

That implies a 4.9% yield on today’s money with a 30% capital gain.

Not firework YOLO returns like $AMC. however, when the party ends and valuations matter again, you’ll be happy owning something that you only paid 11 times earnings for.

Surprised so many on this board are pointing to high analyst estimates as a reason to hold or buy Peloton…..look at Pfizer…virtually no upgrades in more than 6 months even though they are generating $30B in cash and growing over 100% top and bottom line and accelerating…….looking at analyst calls is a lagging not leading indicator. I like Peloton brand but am not comfortable they have figured out how to break even, despite their scale in a pandemic. I will continue to watch….I hold no position Peloton for an entry point if they can show they won’t go bankrupt…..instead I am enjoying being long $PFE $FDX $td.to $aapl

As expected, TD beats consensus.

Also as expected, no dividend increase with this earnings announcement. I expect the next dividend hike in 3 months.

Not that anyone cares...