Toronto-Dominion Bank (TSX:TD)(NYSE:TD) reported its latest earnings numbers last week, which demonstrated the top bank’s resiliency. While TD has been facing many issues, including growth restrictions in the U.S. due to an anti-money laundering settlement last year, it reported adjusted earnings per share of $1.97, which easily beat analyst estimates of $1.76. And its wholesale banking unit achieved a 10% year-over-year increase in revenue, as it benefitted from higher trading revenues and more underwriting fees.
TD is still working on trimming costs, however, and it announced it would be laying off 2,000 employees. While it will reduce expenses due to the restructuring (there will be an estimated $650 million per year in savings), in the short run, it’s going to incur expenses over several quarters due to the downsizing.
Overall, TD’s financial position remains strong and investors have flocked to the stock this year amid market turmoil. Since the start of the year, shares of TD have soared around 22%. And on Friday, this stock hit a new 52-week high, as the level of bullishness continues to be strong around the business.
In addition to being a stable investment, TD is also a top dividend stock, which yields 4.5%. To collect $1,000 in annual dividends from it, you’d need to invest around $22,230.
This is a good buy-and-hold stock to put into your tax-free savings account and simply hang on to for the long haul. The stock trades at a reasonable 12 times its estimated future earnings, and while its valuation has been rising, it still doesn’t look terribly expensive.
