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Royal Bank of Canada (RY $214.09)
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Toronto-Dominion Bank (The) (TD $116.96)
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Bank of Nova Scotia (The) (BNS $96.03)
Q: I have owned all the Canadian banks at one time or another, and currently own shares in Royal Bank.
All of the banks seem to have done quite well just recently, but the dividend on the Royal Bank is not as high as the TD for example.
Is it time to change? Which do you think looks best going forward for a total ROI?
All of the banks seem to have done quite well just recently, but the dividend on the Royal Bank is not as high as the TD for example.
Is it time to change? Which do you think looks best going forward for a total ROI?
5i Research Answer:
Picking Canadian banks is very difficult because historically, the weak performer tends to revert to the mean. We think RY is fine, and it is the largest and likely safest of the bunch. TD still has lots of US exposure, which we think will be good for it in the next couple of years. We would prefer to own both as opposed to betting on just one. If an investor only wants one we would stick with safety-in-size with RY. TD 'probably' has better potential over three years.