David Sykes- TD Asset Management Inc.

U.S. corporate revival overlooked, manager says

Diana Cawfield 12 October, 2012 | 9:39PM

David Sykes, manager of the $135-million TD North American Dividend, thinks that the growing strength of corporate America has been overlooked by investors.

"It's very ironic," says Sykes, a vice-president and director at TD Asset Management Inc. "When a lot of investors in Canada got frustrated with the U.S. , "it was a time when companies were flush with cash and were continuing to reward shareholders with consistent dividend increases. Over the last couple of years, I think the U.S. market has done much better than the Canadian market."

Reflecting his bullishness on the prospects for our southern neighbour, TD North American Dividend has a 75% weighting in the U.S. Despite the difficulties facing the U.S. government and consumers, "I think people have overlooked the fact that corporate America has never been in better shape," says Sykes. "Their operating margins are very close to all-time highs, and cash on the balance sheet is at all-time highs."

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Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.