A Few Years From Now, You'll Wish You'd Bought This Undervalued Stock

If you are looking for an undervalued high-yield stock, then look no further than Toronto-Dominion Bank (NYSE: TD), more commonly known as just TD Bank. It has a lofty 5.2% dividend yield, which is more than twice the 2.5% yield of the average bank stock.There's a reason TD Bank's yield is so lofty right now. It just got hit with a big fine because its U.S. business' money laundering oversight failed, and the stock is down. Needless to say, there's a lot of headline risk right now. But this issue isn't likely to be a long-term problem for the 169-year-old bank. In fact, this is quite possibly an ideal time to buy its undervalued stock. If you don't, you might end up regretting it a few years from now.TD Bank is the second-largest bank in Canada by deposits. This is important to the story because it provides the foundation for the company's overall business. The Canadian banking sector is highly regulated. This has resulted in two key differences from the U.S. banking sector. First, the largest banks are basically protected from competition. Second, Canadian banks tend to be run conservatively.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool