Article contentCanada’s Big Six banks just closed out a fourth-quarter earnings season that was generally well received by Bay Street. The next question for investors is where do the stocks, which helped propel the S&P/TSX composite to a robust gain in 2025, go from here? In a note to investors, RBC Capital Markets analyst Darko Mihelic raised his price estimate for Toronto-Dominion Bank (TD:TSX) to $148 from $133 on a “solid” quarter after results came in stronger than expected across multiple sectors. TD ...

分组1 - Credicorp reported quarterly earnings of $5.88 per share, missing the Zacks Consensus Estimate of $6.61 per share, but showing an increase from $3.76 per share a year ago, resulting in an earnings surprise of -11.00% [1] - The company posted revenues of $1.8 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.16%, compared to year-ago revenues of $1.41 billion [2] - Credicorp shares have increased approximately 19.8% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $6.99 on revenues of $1.73 billion, and for the current fiscal year, it is $29.04 on revenues of $7.19 billion [7] - The Zacks Industry Rank for Banks - Foreign is currently in the top 12% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Credicorp has a Zacks Rank of 2 (Buy), suggesting that the shares are expected to outperform the market in the near future [6]

Core Viewpoint - Investors in the Banks - Foreign sector may find Toronto-Dominion Bank (TD) and ICICI Bank Limited (IBN) as potential investment options, with a closer examination needed to determine which stock is more appealing to value investors [1] Group 1: Zacks Rank and Earnings Estimates - Toronto-Dominion Bank currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to ICICI Bank Limited, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank is a strategy that focuses on companies with positive earnings estimate revisions, suggesting a more optimistic analyst outlook for TD [2] Group 2: Valuation Metrics - Value investors utilize various valuation metrics to assess whether a company is undervalued, including the P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - Toronto-Dominion Bank has a forward P/E ratio of 14.72, while ICICI Bank Limited has a higher forward P/E of 18.74 [5] - TD's PEG ratio is 1.32, which is comparable to IBN's PEG ratio of 1.39, indicating similar expected earnings growth rates [5] - TD's P/B ratio stands at 1.92, significantly lower than IBN's P/B ratio of 2.65, suggesting that TD may be more attractively valued [6] - These metrics contribute to TD's Value grade of B and IBN's Value grade of C, reinforcing the notion that TD is the more favorable option for value investors at this time [6]

Core Insights - The article discusses the investment journey of an individual who has been investing since 2009, focusing on dividend growth investing as a strategy to build passive income and achieve financial freedom [1]. Group 1: Investment Strategy - The individual emphasizes the importance of cash flow in their investment approach, aiming to create a growing source of passive income [1]. - The investment strategy is centered around accumulating assets under the dividend growth investing model, which aligns with the philosophy of leaving things better than found [1]. Group 2: Personal Background - The investor is a mid-thirties Canadian employed in Clinical Informatics, specifically in software and programming [1]. - The first investment was made in Toronto-Dominion Bank (TD) during the financial crisis, and the investor continues to hold those shares [1].

Core Viewpoint - Bank of Nova Scotia, known as Scotiabank, has a long history of paying dividends since 1833, currently offering an attractive yield of 4.7% which stands out in comparison to other banks [1] Group 1: Dividend Yield - Scotiabank's dividend yield of 4.7% is significantly higher than the average yield of large U.S. banks at 2.4% and regional banks at 2.5% [2] - Compared to other major Canadian banks, Scotiabank's yield is also superior, with Toronto-Dominion Bank and Bank of Montreal at 3.7%, Canadian Imperial Bank of Commerce at 3.2%, and Royal Bank of Canada at 3% [3] Group 2: Industry Characteristics - The Canadian banking industry is characterized by high regulation, which provides large banks like Scotiabank with protected market positions and limits the likelihood of smaller banks gaining significant market share [5] - This regulatory environment leads to conservative operational practices among Canadian banks, reducing the frequency and impact of strategic errors [6]

Core Viewpoint - Toronto-Dominion Bank (TD) is experiencing a mixed performance in the stock market, with a recent increase in stock price but a projected decline in earnings for the upcoming report [1][2]. Group 1: Stock Performance - TD closed at $74.43, reflecting a +1.16% change from the previous day, outperforming the S&P 500's gain of 0.14% [1]. - Over the past month, TD's stock has risen by 3.81%, which is below the Finance sector's gain of 4.07% and the S&P 500's gain of 5.35% [1]. Group 2: Earnings Projections - The upcoming earnings report for TD is expected to show earnings of $1.41 per share, indicating a year-over-year decline of 6% [2]. - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and revenue of $43.92 billion, reflecting changes of -0.52% and +4.65% respectively from the previous year [2]. Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for TD are important as they indicate shifts in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [3]. - TD currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Consensus EPS estimate having increased by 0.32% in the past month [5]. Group 4: Valuation Metrics - TD is currently trading at a Forward P/E ratio of 12.88, which is a premium compared to the industry average Forward P/E of 9.94 [6]. - The company has a PEG ratio of 1.66, higher than the average PEG ratio of 1 for the Banks - Foreign industry [7]. Group 5: Industry Context - The Banks - Foreign industry, to which TD belongs, has a Zacks Industry Rank of 12, placing it in the top 5% of over 250 industries [7]. - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8].

Group 1 - The core belief is that successful investing involves consistently allocating capital to high-quality businesses rather than following seasonal selling trends [1] - The individual has been investing in equities since 2009, focusing on dividend growth investing to build a source of passive income [2] - The investment philosophy emphasizes improving situations and leaving things better than found [2] Group 2 - The analyst has disclosed a beneficial long position in specific Canadian stocks, indicating a personal investment interest [3] - There is a disclaimer regarding past performance not guaranteeing future results, highlighting the importance of individual investor suitability [4]

Core Viewpoint - Dividend 15 Split Corp. has announced a Normal Course Issuer Bid (NCIB) to repurchase its Preferred Shares and Class A Shares, which will run from June 2, 2025, to June 1, 2026 [1] Group 1: NCIB Details - The company plans to buy up to 12,687,975 Preferred Shares and 13,219,443 Class A Shares, representing 10% of the public float [2] - As of May 21, 2025, there were 127,069,383 Preferred Shares and 132,275,624 Class A Shares outstanding [2] - The company will limit purchases to a maximum of 2,541,387 Preferred Shares and 2,645,512 Class A Shares in any 30-day period [2] Group 2: Previous NCIB - Under the previous NCIB that ran from May 29, 2024, to May 28, 2025, no shares were purchased [2] Group 3: Management Perspective - The Board of Directors, advised by Quadravest Capital Management Inc., believes that the share repurchases are in the best interests of the company and a desirable use of funds [3] - All repurchased shares will be cancelled [3] Group 4: Investment Portfolio - The company invests in a high-quality portfolio of leading Canadian dividend-yielding stocks, including major banks and financial institutions such as Bank of Montreal, Royal Bank of Canada, and Enbridge [4]

Core Viewpoint - Dividend 15 Split Corp. II has announced its intention to initiate a Normal Course Issuer Bid (NCIB) to repurchase its Preferred Shares and Class A Shares, which will run from June 2, 2025, to June 1, 2026 [1]. Group 1: NCIB Details - The Company plans to purchase up to 2,242,527 Preferred Shares and 2,234,759 Class A Shares, representing 10% of the public float of 22,425,275 Preferred Shares and 22,347,591 Class A Shares [2]. - The maximum number of shares that can be purchased in any 30-day period is limited to 448,505 Preferred Shares and 448,677 Class A Shares, which is 2% of the issued and outstanding shares as of May 21, 2025 [2]. - No shares were purchased under the previous NCIB that ran from May 29, 2024, to May 28, 2025 [2]. Group 2: Management Perspective - The Board of Directors, advised by Quadravest Capital Management Inc., believes that the share repurchases are in the best interests of the Company and represent a desirable use of its funds [3]. - All repurchased shares will be cancelled following the NCIB [3]. Group 3: Investment Portfolio - The Company invests in a high-quality portfolio of leading Canadian dividend-yielding stocks, including major banks and financial institutions such as Bank of Montreal, Royal Bank of Canada, and Enbridge [4].

Distribution Announcement - TDb Split Corp. declares a regular monthly distribution of $0.05000 for each Class A share and $0.05833 for each Priority Equity share, payable on June 10, 2025, to shareholders on record as of May 30, 2025 [1][3] Historical Distribution - Since inception, Class A shareholders have received a total of $8.15 per share, while Priority Equity shareholders have received a total of $9.44 per share, resulting in a combined total of $17.59 [2] Investment Focus - TDb Split invests in common shares of Toronto-Dominion Bank, a leading Canadian financial institution [2]