2 Canadian Bank Stocks To Buy Right Away

Canadian bank stocks attracted major traction from investors this year after all the top six banks reported healthy earnings in the beginning of 2021. Even as the economy continues to recover from the pandemic lows, COVID-19 is back with a third wave and many investors are exploring good bank stocks once again. As stocks of Toronto-Dominion Bank (TSX:TD) and Bank of Nova Scotia (TSX:BNS) hit the trending charts on Monday, April 26, let’s dive in and check their latest profiles.

Toronto-Dominion Bank (TSX:TD)

An average of over five million Toronto Dominion shares were traded on the TSX in the past 10 days. It is one of the largest banks in Canada, with a market cap of over C$ 153 billion (as per TMX).

There had been some speculation about The Toronto-Dominion Bank looking for significant deals to strengthen its position in the US. Recently, TD Bank CEO Bharat Masrani said in an interview that the bank is open to mergers and acquisitions in the US. 

TD stock expanded by 53 per cent in the past one year and by nearly three per cent over the last month.

1-year chart of stock performance of Toronto-Dominion Bank (Source: Refinitiv/Thomson Reuters)

In the last three years, the lender witnessed a dividend growth of 8.37 per cent. Currently, it distributes a C$ 0.79 quarterly dividend that comes with a dividend yield of 3.756 per cent at the moment.

TD Bank’s total revenues amounted to C$ 10.8 billion in Q1 2021, up from C$ 10.6 billion in Q1 2020. Its adjusted net income also shot up to C$ 3.3 billion in the latest quarter.

Bank of Nova Scotia (TSX:BNS)

Bank of Nova Scotia, as per TMX, offers a return on assets of 0.55 per cent and holds a market cap of nearly C$ 95 billion. Scotiabank’s quarterly dividend of C$ 0.9, on the other hands, posts a dividend yield of 4.614 per cent.

Scotiabank’s stock grew by nearly 38 per cent in the past six months and shot up by over 46 per cent in the last one year. Its Monday’s closing price, at C$ 78.02, was about three per cent down from its 52-week of C$ 80.16 (March 18, 2021).

1-year chart of stock performance of BNS (Source: Refinitiv/Thomson Reuters)

Bank of Nova Scotia’s net income stood at C$ 2,398 million in the first quarter of fiscal 2021, up from that of C$ 2,326 million in Q1 FY20. Its diluted earnings per share in the latest quarter also rose to C$ 1.86. 

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.