Tangerine Alternatives? | Tangerine Bank | Discussion forum

With the BoC's move this morning, it is a race to the bottom right now.

Index funds will start to look attractive on any significant pullback. Not sure if that will come any time soon with continued interest rates cuts fuelling the rally.

Is anyone considering bond funds? The adage is that as interest rates come down, bond funds make gains.

If so, any favourites?

topgoat, I've had good experience with Wealth One, just fyi, easy to deal with and transact, though never exceed CDIC limits with them.

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Usephrase ⬆

TD stocks have dropped Considerably in the last few days, due to the troubles they recently had in the States (now over). 'Now' might be a good entry point ... and that Sweet Dividend pays you to wait for when their stock goes back up again.

If I didn't own TD stock already, I'd be buying in right now.

Dean

How is TD stock an “alternative” to tangerine HISA exactly?

moneyhelp said

I think he means because TD stock is selling at a "discount" at the moment, coupled with their decent dividend yield, makes it a worthy alternative, at least at the moment.  

All shares can go down as well as up but TD has a particularly good chance of delivering a lot more pain to its shareholders. All we know is that the bank has been mismanaged and is a mess and that it won’t be allowed to fail. We also know that the highly profitable Canadian brokerage is finally getting strong competition and is forced to bribe customers big time. We don’t know if the management can turn it all around quickly or if there is more bad news and pain on the horizon.

Suggesting stocks as an alternative to cash seems pretty dodgy in all circumstances but kinda crazy in this particular case.

For sure, TD performance will be impacted in USA in long term, but NO impact in Canada. TD will deliver its stock dividend increase less than other banks in the future years.

I copied what analysts said after USA announced the punishment 3 billions dollars and restricted the TD expansion in USA in years:

--RBC Capital Downgrades Toronto-Dominion Bank to Sector Perform from Outperform, Adjusts Price Target to CA$82 From CA$88
07:29 AM EDT, 10/15/2024 (MT Newswires) -- Toronto-Dominion Bank (TD.TO, TD) was downgraded to Sector Perform from Outperform at RBC Capital Markets.
Analyst Darko Mihelic lowered his price target on shares of the Canadian bank to $82 from $88.
"TD reached a resolution on its US Bank Secrecy Act/Anti-Money Laundering issues, which included both monetary and non-monetary penalties, of which the most pertinent in our view is the asset cap that will restrain TD's growth efforts in the US for a long time to come," Mihelic said in a note to clients.
"We believe it will be difficult for TD to outperform its peers over the medium term, as it has limited strategic flexibility, lower earnings/dividend growth, and significant cultural change coming, leading to a relative valuation discount," the analyst said.

TD Bank Global Settlement Clarified, Restrictions Could Weigh on Stock Long-term, Says National Bank
07:23 AM EDT, 10/11/2024 (MT Newswires) -- TD Bank (TD.TO, TD) and U.S. regulators on Thursday disclosed the details of the global settlement related to anti-money laundering (AML) issues. The financial impact of the items outlined by TD - including asset reduction, higher AML compliance costs) - are in-line with the company's current 2025 forecasts, National Bank said, adding that the restrictions and penalties could weigh on the stock long-term.
TD had already identified US$500 million of compliance costs in fiscal 2025 (already in National's forecasts), but this figure could be repeated in fiscal 2026, analyst Gabriel Dechaine notes.
An asset cap restriction also limits the growth potential of TD's U.S. P&C operation, which has accounted for 30% of its earnings over the past year, Dechaine writes. The bank plans to trim its U.S. asset base by 10% in order to "create capacity to continue to serve our customers while maintaining buffer to asset cap." This is expected to cut pre-tax NII by US$200-225 million over fiscal 2025.
TD expects to offset the revenue erosion via the sale of lower yielding securities and subsequent re-investment into higher yielding ones. This is forecast to generate a revenue uplift of US$300-500 million in fiscal 2025 and will more than offset the impact of asset/loan reductions.
National Bank rates TD sector perform with a $78 target price.

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DJ TD Bank Group Price Target Cut to C$91.00/Share From C$93.00 by Cormark Securities, from 59 minutes ago by Dow Jones
59 minutes ago by Dow Jones
Companies Mentioned: TD, TD
• DJ TD Bank Group Price Target Cut to C$80.00/Share From C$90.00 by Barclays Capital, from 59 minutes ago by Dow Jones
59 minutes ago by Dow Jones
DJ TD Bank Group Price Target Cut to C$91.50/Share From C$93.50 by Canaccord Genuity, from 59 minutes ago by Dow Jones
59 minutes ago by Dow Jones
Companies Mentioned: TD, TD

10.10.24 Hold Maintained
Sohrab Movahedi
BMO Capital
4 star rating $84.00 follow Sohrab Movahedi
10.10.24 Hold Downgraded
Darko Mihelic
RBC Capital
4.4 star rating $82.00 follow Darko Mihelic
10.09.24 Hold Reiterated
John Aiken
Jefferies
1.3 star rating $80.00 follow John Aiken
10.09.24 Buy Maintained
Matthew Lee
Canaccord Genuity
4.6 star rating $91.50

HIS: Motive Financial
GIC (3yrs+): Saven Financial

Note: Looks to me that GICs will be going down everywhere and quite soon.

I agree TD is not a cash alternative, but there is no way the Canadian government would let TD fail if it came down to it, making it a good-great time to invest into TD stock, if you're a LTM investor