Should You Buy Citigroup While It's Below $76?

Core Viewpoint - Citigroup, while a well-known bank, has a history of poor performance during economic downturns, particularly during the Great Recession, leading to concerns about its current investment potential [1][4]. Group 1: Company Overview - Citigroup provides a range of financial services, including consumer and business banking, investment banking, and wealth management, positioning itself similarly to its largest peers [2]. - The bank's historical challenges, including a government bailout during the Great Recession and a cut in dividends, have left shareholders with significant losses, as neither share price nor dividends have returned to pre-recession levels [4]. Group 2: Current Financial Position - Citigroup has improved its financial security and operational prudence since the Great Recession, yet its stock price has struggled to surpass the $76 level over the past decade [5]. - The current dividend yield for Citigroup is approximately 3%, which is higher than the average bank yield of 2.7%, but lower than Toronto-Dominion Bank's yield of 4.4% [8]. Group 3: Comparative Analysis - Toronto-Dominion Bank (TD Bank) did not cut its dividend during the Great Recession, benefiting from stricter regulations in Canada, which has led to a more conservative business model [9]. - Despite facing challenges due to regulatory issues in its U.S. operations, TD Bank has maintained its dividend growth, signaling resilience and potential for recovery [11]. - Citigroup's investment appeal is diminished compared to TD Bank, which offers a higher yield and better prospects for income and capital appreciation [13].