Recent Buy – TD

buy

As indicated in our April dividend update, we have been keeping an eye on Toronto-Dominion Bank (TD.TO) for the last few weeks. As the general weakness in Canadian bank sector continues, we believe TD remains a strong long term dividend holding.

We purchased 27 shares of TD.TO to add to our existing position.

Since our last purchase of TD back in March, not a whole lot has changed. The price of TD has been going sideways since April. We plan to hold TD shares for a very long time, so we do not pay much attention on what the stock price is doing. If we think the company will continue bringing profits in the future and continue growing, then it makes sense to invest in the company.

How good is TD when it comes to dividend history? TD started paying dividends in 1857. That makes it a 158 straight years of dividend payment streak. Although TD hasn’t raised dividend every year during this streak, this long lasting dividend payment history is still very impressive nonetheless. TD currently has a forward looking PE ratio of 11.5 and a 5 year PEG ratio of 1.19. At current yield of 3.68% and a 10 year annualized dividend growth rate of 10.5%, we believe adding more TD shares is a calculated conservative move.

The purchase of TD.TO will add $55.08 in our annual dividend income.

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30 Comments

  • Reply
    Income Surfer
    May 14, 2015 at 3:55 pm

    Now that’s a dividend history Tawcan. No new purchases for us this week, but we’re getting close on Union Pacific. A couple weeks back we added to our JNJ and NWLI holdings. Cheers
    -Bryan

    • Reply
      Tawcan
      May 15, 2015 at 11:18 am

      Hi Bryan,

      I love your JNJ buy. Union Pacific is looking pretty solid for a buy too.

  • Reply
    HMB
    May 14, 2015 at 4:12 pm

    Good to hear you made a solid buy. I’m like you in that I do not really pay attention to stock prices for my holdings. Unless of course they go on sale and I have the capital to average down my cost basis. Building a long term portfolio is really nice that way. Thanks for sharing.

    – HMB

    • Reply
      Tawcan
      May 15, 2015 at 11:19 am

      Hi HMB,

      Building a solid long term portfolio is the way to go. Worrying about daily ups and downs just takes too much energy.

  • Reply
    Scott
    May 14, 2015 at 6:01 pm

    Wow! What a dividend streak! Looks like a great addition. Out of curiosity, what is the official arrangement between TD Ameritrade and TD.TO? I use the former for my options trades. Thanks! Always fun to invest in companies that you use.

    • Reply
      TD Employee
      May 15, 2015 at 8:18 am

      TDBFG is TD Ameritrade’s largest shareholder, owns about 43-44% I believe off the top of my head.

    • Reply
      Tawcan
      May 15, 2015 at 11:21 am

      Hi Scott,

      I’m not too familiar with TD Ameritrade but think they’re associated with TD.TO somehow.

  • Reply
    Dividend Hustler
    May 14, 2015 at 7:07 pm

    Hey Tawcan. Awesome purchase bud. Love the buy. Great quality company for sure. Keep it up and I always enjoy coming to your site. Cheers my friend.

    • Reply
      Tawcan
      May 15, 2015 at 11:19 am

      Hi Dividend Hustler,

      Appreciate your kind words.

  • Reply
    JC
    May 14, 2015 at 8:26 pm

    Looks like a great buy. TD is another CDN bank I’d like to own but the recent climb in their share prices here in the US has eaten away at some of the value. Definitely on my radar though.

    • Reply
      Tawcan
      May 15, 2015 at 11:20 am

      Hi JC,

      I wish that we jumped in on the buying opportunity earlier, but like I stated, we’re in it for the long haul and I think the price will continue to climb moving forward.

  • Reply
    Investing Pursuits
    May 14, 2015 at 8:40 pm

    Tawcan,

    TD is a company that will continue to do well over time. Glad to have your as a fellow shareholder.

    • Reply
      Investing Pursuits
      May 14, 2015 at 8:41 pm

      “you” not “your”. I should review my typing more LOL

    • Reply
      Tawcan
      May 15, 2015 at 11:21 am

      Hi Investing Pursuits,

      That makes us two happy shareholders. 🙂

  • Reply
    Get Rich Brothers
    May 15, 2015 at 1:40 am

    Tawcan,

    I have to admit I have a sentimental spot for TD. I picked my shares up in 2009 during the midst of the financial crisis and have been loving the growing Yield-On-Cost ever since… currently +8%. The dividend growth has been phenomenal over the years and is most likely going to keep trucking on as TD does its job incredibly well in both Canada and the U.S. where it keeps growing.

    Take care!
    – Ryan from GRB

    • Reply
      Tawcan
      May 15, 2015 at 11:22 am

      Hi Ryan,

      Wow that 8% yield on cost is pretty juicy. I wish that I picked up some banking stocks back in 2009 too. 🙂

  • Reply
    Jayson @ Monster Piggy Bank
    May 15, 2015 at 5:41 pm

    That is a good way of building a portfolio, Tawcan. I am actually encouraged to buy some from TD, which seems to be reliable and a good choice. Congrats Tawcan.

  • Reply
    Roadmap2Retire
    May 15, 2015 at 5:45 pm

    Really like this purchase, Tawcan. TD is one strong company and that dividend streak is hard to beat – only a couple of other Cdn banks have a long history.

    Best wishes
    R2R

  • Reply
    My Own Advisor
    May 16, 2015 at 6:18 am

    Happily DRIPping TD every quarter. Good call.

    Not buying anything new, saving for the extra $4500 TFSA room now.

  • Reply
    vivianne
    May 16, 2015 at 11:02 am

    While I think Financial stocks are one of the only few value stocks in the market right now, I won’t buy anymore Canadian stocks. I found out that dividend from BMO that I bought got withheld, then later this year, I’ll have to pay taxes again! double taxes?! Yikes!

  • Reply
    Dividend Diplomats
    May 17, 2015 at 6:38 am

    Tawcan,

    DAMN! Nice purchase, picked up quite a bit there and added a nice chunk to a forward dividend income total, pumped for you – making it consistent and making your positions bigger. Great purchase and congrats!

    -Lanny

  • Reply
    Juventus Double-Decks Bus Holding Off Real Madrid Relentless Attacks | Well Rounded Investor
    May 17, 2015 at 1:41 pm

    […] Recent Buy – TD – The Tawcan is getting it done! They eye themselves on Canadian banks. Which I share the same view. Banks are currently undervalue. […]

  • Reply
    Inequality Today
    May 18, 2015 at 1:28 pm

    I’m going to wait a little before I buy some UPRO (S&P 500 index 3x leveraged).

  • Reply
    Dan @ Our Big Fat Wallet
    May 19, 2015 at 11:23 am

    Nice, pretty hard to beat 158 straight years. I like TD personally and plan to buy in the future

    • Reply
      Tawcan
      May 21, 2015 at 7:52 pm

      Hi Dan,

      Definitely hard to beat 158 straight years of dividend payout.

  • Reply
    Ryan
    May 19, 2015 at 2:56 pm

    Very nice! I love me some Canadian banks and completely sign off on this move. Great purchase!

    • Reply
      Tawcan
      May 21, 2015 at 7:53 pm

      Thanks Ryan, glad to see that you agree with the purchase.

  • Reply
    Allan
    May 21, 2015 at 5:18 am

    Hi Tawcan,
    TD is a solid buy for sure. I heard a story recently about a former employee who was at the bottom of the ladder in that bank but participated in the employee stock buying plan. It seems that even though he wasn’t a high level manager, he ended up millionnaire anyway! 🙂

    I have a small stake in TD but I might make it one of my core holding over the years. It’s a very strong bank.

    Cheers

    • Reply
      Tawcan
      May 21, 2015 at 7:55 pm

      Hi Allan,

      That’s pretty cool to hear that kind of story from a former TD employee. Just to show you the power of compound interest.

  • Reply
    DivHut
    May 23, 2015 at 1:01 am

    Though I have pulled the throttle back a bit on the Canadian banks in my ROTH I did just add some more BNS. Still waiting for a bit of a pullback to add to my TD and RY as well. Thanks for sharing.

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