Share prices continue to fall and one stock investors may want to keep a close eye on is Toronto-Dominion Bank (TSX:TD)(NYSE:TD). Already around its 52-week lows as of the end of last week, the top-five bank stock was down again on Monday.
Lower oil prices and a possible price war involving Saudi Arabia have put investors on edge. A poor outlook for oil and gas only makes the Canadian economy worse shape, and financial stocks like TD could suffer as a result.
However, over the long term, it’s still a top dividend stock to own. With its dividend yield now around 5%, it could be a rare opportunity to lock-in a higher-than-usual yield for TD.
Normally, investors have to look to riskier stocks in the hopes of securing a good dividend. That’s why this opportunity is special today, and it may not last long.
Although it’s not an easy time to be buying stocks amid such a significant selloff, it could also be the best time to do so. If you’re a long-term investor, you know that shares of TD will inevitably recover.
The business remains strong and profitable and even if a recession happens in 2020, it’ll bounce back from that as well. There’s no company-specific issue or risk that’s weighing on the stock or that makes TD a bad buy. Conditions out of its control are weighing on the stock.
It may require some patience from investors, but there could be some great returns owned from buying shares of TD today.
