Toronto Dominion Bank (TD)

[Diogenes of Sinope]

TD (TSX:TD) trades for $88 at the time of writing compared to $109 at the peak in February. The share price is down about 11% year to date, and TD trades at a multiple of about 11 times trailing 12-month earnings.

The stock has held up better than some of its peers, but it still looks undervalued. TD built up a large cash hoard during the pandemic and is using the funds to make two acquisitions in the United States to drive future growth. The purchase of First Horizon for US$13.4 billion will make TD a top-six bank in the American market. TD is also buying Cowen, an investment bank, for US$1.3 billion.

TD raised the dividend by 13% for fiscal 2022. Another big increase should be on the way for next year. Investors can currently get a 4% dividend yield.

https://ca.finance.yahoo.com/news/3-bank-stocks-too-cheap-154500497.html