OK, so it’s not fully international, as this Canadian bank also provides services across the U.S. The firm is in this category because it’s definitely one of the best banks outside of our borders.
Toronto-Dominion Bank (USA) (NYSE:TD), or TD as it is known to customers, has assets and liabilities up in the $700-billion range. The company managed to do around $22 billion in sales last year, earning approximately $6.2 billion from those sales.
Toronto-Dominion Bank (USA) (NYSE:TD) pays the highest dividend out of all of the banks in this article at 4.1%. That’s quite a solid dividend from this very sturdy bank.
Over the last five years, the company has managed to grow sales by an annual rate of approximately 5.5%, and grow EPS by an annual rate of 10.2%.
Projected future growth from the analysts covering the stock shows that we’ll likely be looking at 3% this year and almost 8% next year. Those are great numbers from a multi-billion dollar company like Toronto-Dominion.
With that future growth, and the high yield that this multinational bank pays out, it’s definitely at the top of my buy list. The payout ratio is a tad high at 42%, which means we’re unlikely to see huge dividend boosts, but we likely won’t see any cuts over the next few years either.
Go with one of the bigger banks here. There may be some smaller regional money centers that I have overlooked, but I think in the grand scheme of things that both Toronto-Dominion and Wells Fargo will outperform.
Toronto-Dominion is my overall favorite, mainly because of that dividend and the consistent growth that it has been showing. I wouldn’t argue if you’d prefer to invest in Wells Fargo & Co (NYSE:WFC).
The article Three Banks From Three Different Banking Sectors originally appeared on Fool.com and is written by Ash Anderson.
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