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Summary
- Toronto-Dominion stocks are up 14 per cent in the last three months. The bank is also paying quarterly dividends consistently.
- Bank of Nova Scotia units have swelled 20 per cent in the same period. The stock holds a positive return on equity.
- Both bank stocks made it to TMX’s top volume companies, driven by their 10-day average trading volume.
Bank stocks are slowly gathering steam on the Toronto Stock Exchange. The S&P/TSX Capped Financial Index has bounced back by 12 per cent in the last three months, led by the gains made by the banking sector. Stocks of Toronto-Dominion Bank (TSX:TD) and Bank of Nova Scotia (TSX:BNS) have been trending on the benchmark exchange, with high price volume across the market.
Let us analyze the market fundamentals of these two stocks:
Toronto-Dominion Bank (TSX:TD)
Current Stock Price: C$ 72.31
The large cap stock has a 10-day trading volume of over 8 million units. The banking scrips are a part of TMX’s top volume performers across the TSX and the TSXV.
Stocks of the Canadian bank surpassed the benchmark index and returned 14 per cent in the last three months. Consequently, the blue-chip stock ranks among TMX’s top financial companies.
The bank stock is delivering a current return on equity of 13.54 per cent. TD distributes a consistent quarterly dividend of C$ 0.79 per common share, with a current dividend yield of 4.37 per cent, as per details on the TMX site.
In the fourth quarter of the fiscal 2020, TD bank registered diluted earnings per share (EPS) of C$ 2.80 against an EPS of C$ 1.54 in Q4 FY20.
Bank of Nova Scotia (TSX:BNS)
Current Stock Price: C$ 67.93
Scotiabank units are also among TMX’s top volume performers, led by its 10-day average trading volume of almost 6.6 million.
The units have increased by nearly 20 per cent in the last three months. Shares of the company have outperformed its peers with the largest gains across the market in the last 30 days.
This blue-chip financial stock is offering a positive return on equity of 10.35 per cent. BNS pays a steady dividend of C$ 0.90 per unit. Its current dividend yield is 5.30 per cent. The stock has a present EPS of C$ 5.43.
In the fourth quarter ended October 31, 2020, the bank posted a net income of C$ 1,899 million, which declined from C$ 2,308 million in Q4 FY20.
