TD Bank low stock price

Trading low how? Are you referring to the actual price per share? If so TD did a 2:1 spilt about 5 years ago.

Price per share close July 29, 2021
BMO = 126.14 (2 for 1 split in 2000)
CM = 145.82 (1 for 1 split in 2015)
RY = 127.00 (2 for 1 split in 2000, 2005)
TD = 83.70 2 for 1, 1999, 2014)

From March 2020 onward, TD has lagged behind all other major banks.

user987 wrote: ↑ Price per share close July 29, 2021
BMO = 126.14
CM = 145.82
RY = 127.00
TD = 83.70

First, the price of a stock is the LAST thing you should be looking at when investing.

Second, as I stated already TD did a 2:1 split on their shares. If you adjust for the split the price would be $167.40 a share, far above the others.

Third, THE SHARE PRICE IS THE LAST THING YOU SHOULD LOOK AT WHEN INVESTING.

kr0zet wrote: ↑ First, the price of a stock is the LAST thing you should be looking at when investing.
Third, THE SHARE PRICE IS THE LAST THING YOU SHOULD LOOK AT WHEN INVESTING.

So the terms "over priced" or "under priced" in the market mean less than what?

user987 wrote: ↑ So there is no such thing as "over priced" or "under priced" in the market"?

Absolutely. Over priced / under priced can refer to may metrics like a companies P/E ratio. Any of these metrics make sense when comparing companies. The stock price today is NOT a metric to compare companies.

What does that have to do with your question of why TD's share price is lower than CM, BMO, RY?

What's the difference between 1:1 and a 2:1 split? The 2;1 makes sense, but can't get my head around the 1:1.

I think TD is a tad bit overpriced.

lpin14 wrote: ↑ What's the difference between 1:1 and a 2:1 split? The 2;1 makes sense, but can't get my head around the 1:1.

I think TD is a tad bit overpriced.

1/1 stock split means,

For issuing company: each share splits into two parts. By this they get double the number of shares for trading activity in market at half the price due to split.

For stock holders: issuing companies termed it as 1:1 split. 1 old shares splits into 2 parts, so 1 existing share will give 1 more share in your account and totals to 2. E.g. 1 old share @ $4 would become 2 shares @ $2.

thus it's called 1/1 split

OP

You need to understand what a stock means.

An example I am going to give you.

First National Bank of Alaska is a small bank in Alaska with 28 branches.

TD Bank has nearly 2300 branches throughout Canada and the US.

Which company is bigger?

FBAK stock price is $234 US

Obviously FBAK is a much smaller company than TD.

The reason for this is how many shares there are.

FBAK has approximately 3 million shares

TD has approximately 1.82 billion shares


In other words, TD is cut up into tinier pieces (shares) than First National Bank of Alaska.

Imagine a 18 inch pizza cut into 36 slices (tiny and thin) vs a 12 inch pizza cut into 4 slices (big and thick).


In other words you cant compare the stock as cheap or expensive based on the price. You need to know how big each piece of stock is.

One simple but better way you could look at a stock is price to earnings ratio (PE ratio). The stock price divided by how much money the company makes per stock could help you figure out if a company stock is cheap or expensive. Just be careful though as this method is not the only way and assumes it is always the same!

Try to understand market capitalization, float, PE ratio and all the terms you see on a stock quote and this will help you better understand the valuation.

Good luck

Definitely read up on what the stock price actually means. They're rarely directly comparable.

Also, dividend yield is what is relevant, not actual dividend $.

user987 wrote: ↑ Compared to RBC, BMO and CIBC, TD stock has been tracking low. Is this the result of issuing lower dividends?

By "tracking low", do you mean the price? If so, Bank of Nova Scotia is currently cheaper than TD. But that really means nothing. If TD does another split 2:1, their share price would be $42 but you would now own double the amount of share you had. That doesn't mean that TD as a company is worth less than RY - it just means TD has more shares in circulation. But also, the opposite might not be true as well - you need to do more research to find out why the price is lower - could be for lots of reasons.

Sorry, that might not have answered you question

user987 wrote: ↑ Price per share close July 29, 2021
BMO = 126.14 (2 for 1 split in 2000)
CM = 145.82 (1 for 1 split in 2015)
RY = 127.00 (2 for 1 split in 2000, 2005)
TD = 83.70 2 for 1, 1999, 2014)

From March 2020 onward, TD has lagged behind all other major banks.

If you are talking about the stock price changes sinceMarch, 2020, then may be TD didn’t drop that much prior to March, 2020, comparing to other banks?

user987 wrote: ↑ Compared to RBC, BMO and CIBC, TD stock has been tracking low.

Is this the result of issuing lower dividends?

IMO no, the stock price for your question can be based on many factors including those discussed by previous posters.

whether it's a Bank, utilities, commodity, whatever publicly listed stock/ETF, the stock price can be what it is based on the business model, performance, outlook, earnings, even management ... etc & not just the dividend amount or as a percentage of the stock price.

take two Bank stocks that each pay the same dollar dividend, yet one stock price is higher or lower than the other - how would you decide which stock to buy?

The stock price can also be influenced by market makers.

user987 wrote: ↑ Price per share close July 29, 2021
BMO = 126.14 (2 for 1 split in 2000)
CM = 145.82 (1 for 1 split in 2015)
RY = 127.00 (2 for 1 split in 2000, 2005)
TD = 83.70 2 for 1, 1999, 2014)

From March 2020 onward, TD has lagged behind all other major banks.

was there a reason to not include BNS?

BNS $77.87 split 2 for 1 04/29/2004

current dividend rate 4.85%

https://en.wikipedia.org/wiki/Big_Five_(banks)

also National Bank, Laurentian Bank

I really want to get into BNS for the dividend but already own BMO (have since 2008) but if I am going to get into another banking stock its gonna be TD. They had some news last week that they are going to be parterning with Canada Post to offer financial services to remote communities, should add a little to the bottom line.

kr0zet wrote: ↑ I really want to get into BNS for the dividend but already own BMO (have since 2008) but if I am going to get into another banking stock its gonna be TD. They had some news last week that they are going to be parterning with Canada Post to offer financial services to remote communities, should add a little to the bottom line.

I started with BNS ($13K) and BMO ($7K). Then added TD ($10K) and RY ($10K). Then, while the market was at it's max, I put $5K into CIBC. Just buy all of them, there's only 5 big banks (6 if you include the bank of canada). Just buy them all, there's all great!

If I had to pick one, I'd probably go with TD - better growth potential but again, buy just a margin. You can't go wrong with either of them.

MrMikeDD wrote: ↑ Just buy all of them, there's only 5 big banks (6 if you include the bank of canada). Just buy them all, there's all great!

You mean National Bank and not Bank of Canada, right?

sunbat wrote: ↑ You mean National Bank and not Bank of Canada, right?

I think the full name is National Bank of Canada, yes. But their logo is just National Bank. Oddly enough, I live in the GTA but I don't think I've ever seen a National Bank - only the other main 5.

MrMikeDD wrote: ↑ I think the full name is National Bank of Canada, yes. But their logo is just National Bank. Oddly enough, I live in the GTA but I don't think I've ever seen a National Bank - only the other main 5.

That is true. Their branches are mainly in Quebec and so is approximately 53% of their revenue. Ontario has very few branches and I don't foresee that changing anytime soon. Personal and commercial banking is not where they make lots of money though. Capital markets, Wealth management and US operations are more profitable for them. Stock has largely outperformed most other Canadian banks over 5, 10, 15 year window perhaps also due to their relatively smaller size compared to other banks.

https://stockcharts.com/freecharts/perf ... D.TO,NA.TO

Above link by default shows 200 days. You can change that by double clicking 200 days bar at the bottom.