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Highlights:
- Bank of Nova Scotia (BNS) paid a C$ 1.03 per share dividend.
- Toronto-Dominion Bank (TD) has a market cap of C$ 165.95 billion
- Bank of Nova Scotia posted a Q4 2022 net income of C$ 2,093 million.
Your registered retirement savings plan or RRSP can be a huge relief if you remain steadfast in contributing regularly. This is a great financial vehicle for Canadians to hold savings and investment assets. Although it is not a guarantee that you will retire comfortably with the help of an RRSP alone, it does have many benefits if you do not withdraw money. It has numerous tax benefits compared to investing outside of tax-preferred accounts.
The money put into the RRSP will compound without being taxed if you do not touch it until you retire.
Here, we discuss two such RRSP stocks- Bank of Nova Scotia (BNS) and Toronto-Dominion Bank (TD) along with their performances in the latest quarter:
Bank of Nova Scotia (BNS)
With its five business segments, Bank of Nova Scotia serves as a global financial services provider. It offers various services like personal and commercial banking, private banking, wealth management, investment banking, etc.
Bank of Nova Scotia has a dividend yield of 6.001 per cent and paid a quarterly dividend of C$ 1.03 per share. It has a three-year dividend growth of 4.64.
The bank posted a net income of C$ 2,093 million in the fourth quarter of fiscal 2022 compared to C$ 2,559 million in the year-ago quarter on a reported basis. Its earnings per share (diluted) in Q4 2022 was C$ 1.63 versus C$ 1.97 in Q4 2021.
On the other hand, the bank’s net income for fiscal 2022 was C$ 10,174 million compared to C$ 9,955 million in fiscal 2021. The earnings per share (diluted) for FY22 was reported at C$ 8.02, compared to C$ 7.70 for FY21.
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Toronto-Dominion Bank (TD)
The C$ 165.95 billion Toronto-Dominion Bank is one of the two largest banks in Canada, having three primary business segments. With a dividend yield of 4.213 per cent, Toronto-Dominion Bank paid a quarterly dividend of C$ 0.96 per share, which is next payable on January 31, 2023.
In its Q4 2022 results, Toronto-Dominion posted diluted earnings per share of C$ 3.62 compared to C$ 2.04 in the same quarter the previous year. The reported net income of the bank in the fourth quarter of fiscal 2022 was C$ 6,671 million versus C$ 3,781 million in the corresponding quarter of fiscal 2021.
For the full year 2022, the bank posted an adjusted net income of C$ 15,425 million compared to C$ 14,649 million in FY21.
Bottom line:
Despite the growth of certain companies, it cannot be guaranteed that these stocks will gain in the immediate future as the equity market has remained volatile in 2022. An investor should always adopt a long-term strategy along with diversification to stay safe when the market is unstable. Do thorough research on the current market scenario before putting your bets in any stock. It will help protect your portfolio and prevent losing money in a bearish market.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
