2 TSX Companies That Are Loaded With Cash | The Motley Fool Canada

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fairly easy
Dividend investors would do well to invest in the Toronto-Dominion Bank stock and Suncor Energy stock. Besides the extraordinary business performances in 2021, both companies are cash-rich.
One of the basic metrics to look at when stock investing is the company's cash position. Does it have ample liquidity? Is the business generating enough money to cover variable and fixed costs, debts, and sustain dividend payments, if it's a dividend payer?

The Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada and the third-largest publicly listed company on the TSX. Suncor Energy (TSX:SU)(NYSE:SU) isn't even half the size of TD, yet its operating activities in Q2 2021 produced $2 billion in cash flows. If you're looking to invest in cash-rich companies, both are excellent choices.

Eyeing expansion

The Big Six banks in Canada have too much cash after Q2 fiscal 2022. TD raised its provision for credit losses (PCL) to an unprecedented level when COVID-19 broke out like its industry peers. Fortunately, the anticipated deterioration of credit quality and increase in delinquencies didn't happen.

TD had $14.6 billion in excess CET1 capital above the 11% industry-standard floor at the quarter's end. The situation is both good and bad. TD needs to find a better use for the money. It's a positive development…
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