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[music] Hello Greg Bonnell and welcome to MoneyTalk Live which is brought you by TD Direct Investing. Coming up on today show will have a look at what dividend stocks will find more popularity with investors heading into the fall with Kera Van Valen, Portfolio Manager at Epic Investment Partners and hit in today's web broker education segment Nugwa Haruna will show us how you can screen for income stocks using the web broker platform. They can get in touch with us. Just email moneytalklive@td.com or typing the viewer response box in the player here on web broker. Before we get to our guest of the day let's get you an update on the markets. Bay Street, with the TSX composite index, a little shy of $90 a barrel but up 3%. 20,287, you have the TSX of 106 points, a little more than half a percent. Let's take a look at one of those big energy names in Canada, as an example of what's happening in the space. Crescent point energy at nine bucks and $0.85. It's up almost 2 1/2%. Forcing a little bit of weakness in the tech space. But we seem to be coming off the lows of the session for some of those names including Shopify. Right now at $47. 87 a share. It's down a pretty modest 68 basis points. South of the border, the S&P 500 energy is also helping power the trade. It looked like another cautious start to the trading day. Seeing where things end up. Yesterday on Bay Street and Wall Street… Investors are trying to build a rally that we've been enjoying the Summer. 4285 were called back. A little more than 10 points or 1/4 of a percent in that broadening of the market. The NASDAQ flipped in positive territory indeed. A little more than half a percent up. Energy names on Wall Street are putting points on the table. Occidental Petroleum core almost up 3%. An aftermarket update. A rough start to the year with dividend stocks playing defence. Rallying to the Summer higher appetite for risk is been a bit of a chill on the space. Well our featured guest today says that heading into the fall we may see new dividend plays. Joining me now is Kera Van Valen Portfolio Manager at Epic Investment Partners. What do you see? >> Inc. you for having me today. I think one of the key things that we think about going into the fall is there is certainly no shortage of uncertainty. We have stubbornly high inflation, we have rising interest rates, a slowing economy leading to questions about whether or not we are tipping into a recession, we still of new covariance and then you have Russians invading Ukraine which then provides conversation between the conflict between China and Taiwan. So, we think there is a very strong place for more defensively oriented equity stocks and equity portfolios in general. Volatility is likely to make remaining high the structural support that you saw for the more speculative growth names is gone. That structural support being extremely accommodative, central bank moves in most recent years, we think it's good to come back to being uncertainty. A lot of conflicting data out there whether it be strong employment numbers, but at the same time you hear the lower end consumer is stretched as a stimulus is gone and the inflationary pressures are felt using, whether it be Walmart commenting, AT&T same people are delaying paying their bills etc. Certainly a lot of conflicting data. We think that more defensive income oriented stocks are well-positioned to help navigate through this uncertainty. Racks over the years, and I've talked to people who do take a look through with these income plays in dividend paying stocks. The one message I always get resounding in my ears is "okay, these might be turbulent times, we don't know what can happen next in the equity market but they're getting paid to (. . . ) > I'd say it's twofold. It can continue to grow as the company faces growth, you can capture productivity. The companies will continue to grow. So you do get paid that income along the way but you also get to participate in rising equity markets. >> When it comes to dividend investing strategies as well, there are obviously companies that pay dividends and that falls within the stream but there are dividend growers as well. Is that part of the screening when you're taking a look at these names? Saying it's one thing to pay them but are you growing it over time? >> Yes, it's absolutely important to have the growth. That is what allows for the sustainability of dividend payments over time. Without the growth, you are essentially paying a liquidating dividend and that just cannot be continued forever. You need the growth and the underlying fundamentals of the business or the operations of the business to sustain the dividends over time. Since growth is extremely important to the sustainability of dividends. >> When I think investors are going to the platform, screening for yields, some yields can be rather eye-catching. Are there some dangers there? That's the beginning of the exercise right? Then you start to wonder "okay, why is the dividend yield so high?" Sometimes can it be too attractive? >> Absolutely. Which is where the sustainability of the dividend comes into play. Simply screening on high yields might mean that that dividend is not sustainable over time. The might the market might know they are facing secular growth challenges. There might not be room for reinvestment in the business and those dividends would not be sustainable over time. The last thing you want to do is invest in a high income generating security only to have that income disappear. So you do really need to find and screen out companies that are just simply paying high dividends because mainly reflecting the challenges in the growth opportunities going forward. >> Good stuff as always. Let's talk about some of the disciplines that you follow at epic and in terms of investing, how you set up your criteria would look into the space question mark >> Sure. Again, we touched on some of it which is growth that is extremely important. You want to find companies that have sustainable and growing free cash flow. Coupled with management teams that emphasize returning cash to shareholders in a discipline framework. So the capital allocation policies are very important. We like to think of the mindset of a CFO. How does the company generate the free cash flow and how do they allocated? That is higher to determine the value of the company over time. By all means, if you can earn above your cost of capital, you should be reinvesting in the business and making acquisitions. That is the fastest way to create value. However, there is not an unlimited supply of opportunities to earn above your cost of capital so it's very much about the discipline of returning any excess free cash flow to shareholders in the form of dividends, share buybacks and debt reduction. So we want that combination of a capital allocation framework that emphasizes cash distribution back to shareholders. But the growth element is critical in terms of the sustainability of the cash flows over time. >> When investors are making these choices, there listening… The company earnings and trying to get a sense of where management is taken the company. >> There has to be a balance in reinvesting in the business or making a modest acquisition. That's what we would want to be hearing. So where the challenges are is where you need to borrow to fund your dividend. You need to sell assets in order to find the dividend… Those are not sustainable. Large transformational acquisitions that are outside of your core competency, that could also cause you to have to revisit your dividend plan. But really, it's really try to understand managing, what is the credible growth story over time? If not investing for each quarter, over the long run how do you think about capital allocations? You can earn your cost of capital, you can reinvest. If not, it's a discipline of returning any excess cash flow to shareholders. From our perspective, dividends actually can be share buybacks or debt reduction or dividends. All three are ways to return the cash to the shareowners. (. . . ) >> At 10,000 foot view, other certain areas where you say "of course there is a more stable area if you're looking for income to place?" >> I would say traditionally and historically, you might've leaned a little bit more into telecom utilities Staples but the truth is it is come a lot broader. You can find income oriented stocks across a variety of sectors. And actually, one of the benefits of technology, as companies are reinvesting in the business, you can actually invest a less absolute dollars to get the same amount of productivity. Which means that free cash flow is high here. Which allows companies to sustain higher dividend payouts or excess cash and forms of shareholder buyback. We are finding you can find all of the sectors and that's something that we quite frankly look for within our portfolio. To be as diversified as possible. Now, does it mean towards more telco within communication services? Yes, within pharmaceuticals and healthcare? Yes. But you still can find a variety of sectors with income oriented stocks which is quite exciting. Even within the technology space, if you combined dividends and share buybacks, you can find a lot of tech stocks that continue to return cash to shareholders quite insistently in the form of dividends and share buybacks your fear. >> Fascinating stuff and a great start to the show. We will get to your questions about dividend stocks with Kera Van Valen and just moments time. A reminder of course it can get in touch with us at any time by emailing MoneyTalkLive@td. com or Phil at the you viewer response box on the player here on web broker. More signs today the American consumer is feeling the pinch of inflation, retailer Kohls says soaring prices are changing the habits of middle income shoppers. The company is cutting its sales and profit forecasts for the year. That as demand drops for clothes, shoes and discretionary items. Earlier this week, retail giant Walmart that it's seeing a shift in consumer behaviour is a greater share of household budget goes toward food and fuel. Global central banks has been hiking costs borrowing costs that is in an effort to slay inflation but Turkey is moving in a decidedly different direction. The country is cutting its main policy rate by a full percentage point. Down 13%. Despite inflation sitting at nearly 80% in Turkey. The move shot the markets and the Turkish lira slid to a near record low against the US dollar. Canadian pipeline giant Enbridge says they will become the operator of the Gray Oak oil pipeline in Texas. The Calgary-based company said the deal flows from its joint venture agreement with Houston's Philipps 66. (. . . ) After a down day yesterday, it seems like the market is still in the summertime rally. All right. We are back with Kera Van Valen from Epic Investment Partners taking your questions about dividend stocks and income investing so let's get right to it. I was just mentioning energy in the market. Oil and gas stocks are up. Free cash flow. Do you expect to dividend hikes and buybacks in this sector? >> So energy is certainly a challenging space. One that has gotten a lot of attention this year. In recent years, given no surprise given the dramatic collapse in energy prices in 2020 followed by earlier this year, the dramatic rise in subsequent fall. But I would say, one thing that we think is that there is a lot of cash flow today. Because the prices rather the price of oil is quite high. You have to be a little careful. So you will see some dividend increases but what's really important for energy companies being more cyclical is that they need to have balance sheets that allow them to operate through the business cycles. We work for companies that have consistent dividends through the commodity price cycles and so you really do need to see a very strong balance sheet and capital discipline about returning the cash to shareholders. It's a challenging space right now. There's lots of reasons to think that oil prices are high, this is not sustainable, the earning incomes are above the marginal cost of production. Therefore the price should come down. But there is reason to believe in the near term it could remain slightly elevated. Is it because of, you know, the challenges of getting oil out of Russia for Europe, the revenge travel, economies reopen? But then on the flipside, it you have seen some reaction from consumers to the higher price of gas at the gas pump or concerns about a slowdown within China. Today, OPEC plus has been discipline but this comes back towards perspective that it's very much about finding companies that it's about capital allocation policies. They have this strong balance sheets and they can increase dividends. Perhaps do some share buybacks given the cash flow position they are in today. Because of the price of underlying commodity. But I would say we tend to favour a little more some of the larger integrated energy companies or the midstream energy infrastructure services companies that are slightly less vulnerable to some of the swings that you see in the broader commodity market. > Of course there are concerns to that longer-term in the energy space, it could be a sunset industry if, you know, society and governments follow through on their carbon commitments. In terms of being an income investor and having a longer term view, if you are in the spaces at the kind of trend you need to keep a careful eye on? >> Absolutely. But it's also, we need to keep in mind, that this is a multi-decade energy transition that we are going through. It is not can happen overnight. And we don't feel that we have actually hit peak demand in terms of the need. These are, I would call them, essential infrastructure services. It's not going away. So we are mindful in trying to understand what the energy transition programs are across the variety of companies that we would hold our portfolios. It does very little bit by country based on different regulations. But it is certainly something you want to be watching it just were still in the early days of this whole decade energy transition they were going through today. >> All right. The energy space there, great analysis. Let's shift the conversation a little. The next question coming in, what are your thoughts on the REIT sector now? > It's a very diverse sector. We found opportunities in senior housing, retail, industrial and warehouse, storage… It's a very diverse sector. I think it's really important… Strong credit ratings are important. But you know, I would say most of the REIT we would be invested in, even in a challenging macro environment with slower growth and higher interest rates, you want companies that rent escalators, that have lease renewals, that will be able to provide a bit of a hedge against inflation. So because of the diversity within the sector, it's hard to have a general call on REITs per se. But we certainly think there is pockets of opportunity to find very consistent cash flow generated companies that are continuing to grow and by nature of being a reach, returning cash to shareholders in the form of dividends. > You can feel there are pushed, pulls as a lot of things fall under the REIT. One push will can be okay. What's the future of the shopping mall? Some of the biggest retails in this company are landlords at shopping malls with the tenants there. There's also the industrial space which in the end becomes warehouse is really because of the booming e-commerce. Is is the kind of trend we have to sit and sift through as we try to make decisions as investors? >> Absolutely. We do have exposure to the industrial warehouse REIT as you mentioned. But also some exposure to some retail REITs. Companies like retail income… A diversified commercial real estate company across the US. Standing within Europe. They have triple net lease models, therefore they do have these rent escalators. They do have rent renewals that come up where they come up to deal with the inflationary pressures. But, you know, it's very important to find companies with diversified tenants in the case of Realty income. They try to focus on more nondiscretionary, lower price point service-oriented retail tenants. Whether they be CVS, Walgreens, Walmart, Home Depot or outside the US. Tesco, Sainsbury. And not be overly reliant on any one tenant. So having great diversification in your tenants and being able to increase the rents and having the rent escalators in their does help provide some protection in an inflationary environment. > All right. Let's get to another question on the platform. I'm interested in Telcos, what's your outlook for the space question mark >> Sure. I would say we are fairly neutral on telcos in general. You have the momentum or the movement towards 5G. It does allow for the different operators to take some pricing. But at the same time within the developed markets, they are fairly saturated. Perhaps Canada's actually an example of a country where you might actually still have some publishing growth. But, by and large, there's a lot of saturation. So I would say we are fairly neutral on telco. Did you have things like smart watches and other connected devices that will be a bit of a growth driver in the near term. But it's probably a bit more on the margin. The larger growth opportunities like automated cars, etc. That's further out of the future. You know, I would say that I would call it a bit neutral. It's a sector where it's very important to invest in your network but you need that balance of not only investing in the network, also returning cash to shareholders from our perspective consistently in the form of attractive dividends. >> We know that when the telcos it do invest, it's very expensive as you said. The second is concerned at all about dividend growth? Usually, they are pretty guarded about bringing that dividend it down. What do they have that sort of, freedom going forward making these big payments to really grow that dividend question mark >> Yeah. You know, I think because you are to take a multiyear approach and understand the investments in the different networks. The spectrum spend. I think that Telcos space in general, has shown great discipline. Overturning excess free cash flow to shareholders in the form of dividends. But also debt reduction. Following the spend. And given that we have gone through a lot of spectrum spend an seen a lot of investment of 5G, we would actually assume that we are to continue to see the deleveraging going on in the Telcos space. Coupled with modest dividend growth over time. >> As always, make sure you do your own research before making investment decisions. Bringing it back to your questions with Kera Van Valen on dividend stocks. Income investing as well in just a moment's time. A reminder of course you get in touch with us any time by emailing us at moneytalklive@td.com. Or you can use the question box. >> Web broker has tools that can help you with the space. Joining us now is Nugwa Haruna senior client education instructor with TD Direct Investing. Nugwa, walk us through web broker to examine that space. >> Always a pleasure being here Greg. When it comes to income investing, it's one of the different investing strategies available to investors. Who have different investment plans and different investment goals. So for instance, investors have available to themgrowth investing that focuses on growth appreciation. In that situation, an investor may consider companies they believe are trading at a discount. On the other hand, there is income investing. And so, I have a quick slide that shows us features that the investors utilize. Essentially, income investing would focus on providing a constant stream of cash to the investor. This kind of investor would be looking for investments that provide things like dividends, it could be interest payment, it could be yields. Because it is some kind of investing, investors want to be aware that there is some kind of risk involved. So for instance, when it comes to those dividend payments, companies cannot cancel their dividends without any prior risk to investors. When it comes to the different kinds of investing securities available to investors, practising income investing, they can utilize stocks, your self and Kera have talked about this extensively today. Investors can also utilize fixed income. It could be things like bonds, guaranteed investment funds, investors could consider real estate investment trust as well. You talked about that a little today as well. As well as mutual funds and exchange traded funds. These are some of the securities investor who practice income investing may have available to utilize to meet their strategy. >> All right. So if investors have made some of those choices, made some of those investments then they're probably trying to figure out "how much income I can it generate off of my portfolio?" How they get those answers in webbroker. >> An investor utilizing… May have a Target when it comes to how much income they're looking to generate. So they can actually utilize the projected income tool within web broker. Once there you can click on accounts and able to click on projected income. This actually takes them to, they can click on the specific accounts that they want to see information for. Maybe they can scroll down. They can see information on the projected income. But just dig a little deeper into what it actually shows us. Firstly the investor can see their projected income for the next 12 months in WebBroker. It gives them I do an idea of what they will receive in the next 12 months. An investor can also decide what the cement will be in Canadian or US dollars. Depending on how whichever currency they prefer to get information on. Now, the investor can see a summary of things like their projected income for the next 12 months and this will be made up of their dividends and interest payments. Once again, depending on the data security you're holding, I will mention that if investors do have a dividend reinvestment plans, that would also be included in the total dividend amount that showed on this page. An investor can also see what their monthly averages which can better help them make plans when it comes to spreading out with their expenses are over the coming months and then when they scroll lower, they actually can be able to see each security they have. It actually pays him some kind of dividend or interest and see how much that is. Finally, investors, once they are in their account, they can also decide to see the full portfolio and how much they are receiving from their portfolio as a whole. Now, investors can set up a target. You can have a monthly one saying that you want your portfolio to provide you this amount monthly. Compare that to what your monthly average actually is. So that will help them plan once again whatever expenses would be for the next coming months. > Great stuff as always, Nugwa thank you so much for joining us. > So great to be here. > Nugwa Haruna is a senior client instructor with TD Direct Investing. We have some upcoming webinars including one with Vitali Mosonov. We are back now with Kera Van Valen taking your questions. Another question off the platform: with the political flavoured. With the US inflation reduction acts, will this have an impact on company's ability to buy back stocks question mark interesting. >> Great question. So we've been watching the inflation reduction acts and at first, this proposed tax on share buybacks was part of Joe Biden's "build back better" plan. It's something we had in our radar screens since 2021. At the end of the day, we don't think a 1% tax will change the allocation framework the companies are following. Could you be have a little bit of share buybacks pulled into this year instead of next year question mark sure. But we think that's more the margin. If for some reason companies are alarmed by a 1% tax on share buybacks, we still think it's a change the mindset of if you can earn above your cost capital. You and reinvest in the business. If not, you return the excess cash flow to shareholders. So it's still welcome back in the form of either dividend share buybacks or pay down debt. Perhaps you might see a little more in the case of special dividends because changing your core dividend, you don't want that one to fluctuate. Most companies are looking for progressive or glowing dividends rather growing dividends over time. On the margins you could get a few more share buybacks, or special dividends. However really don't think that the 1% tax is going to deter good sound capital allocation policy. So we just don't see it as a big headwind despite the fact that it is gotten a lot of press recently about share buybacks. It is also not all the same for all share buybacks. From a reoccurring source of cash, you want the reason for the share buyback to be truly that you are returning any excess free cash flow to shareholders. You don't want to do share buybacks simply to grow your EPS number two hit a target. You really wanted to be because you run out of opportunities to have growth. … A share buyback or debt reduction. > Great insight on I rather fresh event in the United States. It's a fascinating question as well. Because when I think of income investing in dividend plays, I often think about political risk. Is this a bit of an anomaly or there's just not a long of history going back think of these things? >> We haven't seen political risk that has a meaningful impact on companies, court capital allocation plans and therefore the cash returns to shareholders in the form of dividends. At times, there have been proposals about how to change the taxation on dividends versus long-term capital gains. It often is a bit of noise. But it really hasn't ultimately, changed the way companies are allocating their capital. You know, we did have one interesting situation in 2020 as governments around the world and regulators around the world were trying to figure out what to do with the pandemic and to slow the spread of COVID-19. You did see some regulars starting to "interfere". Starting with capital allocation plans. I will use that European financials as an example. The regulators were guessing the companies were not to pay dividends even if they were already approved for the dividend. Yet had the cash flow to continue to sustain the dividend. It was regulators suggesting ultimate prudence. Those dividends have now been resumed. I would call that an anomaly. Not something we see often. It was in response to a pandemic. Where we didn't have a playbook on how to deal with the global pandemic. But no. I would say, it is typically the political influence it is a bit more noise and not actually having a meaningful impact on the capital allocation program of the different comedies. >> That makes me think a bit better care up. I thought I wasn't paying attention because it's my job to pay attention. Let's take another question off the site. Coca-Cola seems to pay a solid dividend. What is your take on the company and the dividend question mark >> So, Coca-Cola we think is a phenomenal company and the fact that they are a very strong brand. They have a wider geographic profile, they have a consumer base that is very loyal. They have also had shipped a business model or rather shifted the business model. They have outsourced the bottling. Low capital investment needs. They consistently can return cash to shareholders in the form of unattractive dividend that is grown consistently over time as well. One of the exciting parts of a Coca-Cola, looking forward, as much as they have a tremendous at home business, they have a large restaurant on premise business. As economies reopen, they actually earn more in their on premise restaurant businesses than they do in the soda that we have been drinking at home. So we think they are well positioned to continue to grow as the economies reopen. They navigated through the pandemic well. They constantly generated sustainable free cash flow and return it to shareholders. Now, you have to be mindful of different COVID flareups and challenges within the world? Taxes on sugar? Etc.… A desire to go towards more or rather less sugar in the Sonos, make sure you have a variety of offerings and there is an awareness of what you are providing had been headwinds in the past? We think economic reopening, the low capital needs of the sustainable cash flow makes it an attractive company over the long run. >> You make a good point in terms of possible challenges for the companies. In the end, it could be changing consumer habits. Coca-Cola has been around for a long time. It's been a leader in the space. But we see others other leaders in the space get knocked out by the fact that consumers want to shift what they want out of the company. >> It's true. And I think Coca-Cola has done a good job of protecting what they would call the brand. Coke, Diet Coke, Coke zero… They also have continued to look into other, energy drinks… Whether it be getting into coffee distribution etc. So they do keep a close eye on what consumers are wanting. They will often refer to it as moments of happiness. So when you are just looking for something to help cheer you up, it's not an expensive item, you can have something that you have enjoyed and you know, bring it together as a family and have your Coke. So they are mindful of the changing consumer preferences. It's meant for different packet sizes, etc. but they are very strong marketing and branding company and having outsourced to the actual bottling operations, it means they really can focusing on making sure they're connecting with consumers etc. >> Interesting stuff. We will get back to your questions for Kera Van Valen on dividend stocks in just a moment. A reminder to make sure you do your own research before making investments. A reminder that you can also get in touch with us at any time. Just email us at moneytalklive@td.com. Or you can use the question box right below this screen here on WebBroker. Just writing your question and hit "send. " We'll see if one of our guests get you the answer. > A little more than halfway through the lunchtime trading our on Bay Street and Wall Street. Let's check on the markets. We'll start here at home with the TSX comps index. Up 76 points. 1/3 of a percent. Let's check out some of those energy names. Let's pick Bay text this time around. Up a little north of 3%. Were seeing a bit of a faded south of the border. Pretty modest right now. You do have that broader read of the American market. We just want to quickly check in on what sectors are at play here. We know the energy names are making some names and gains in South of the border wall street. Still on positive territory. Telecom and some of the big financials that are pulling down the broader index. Let's check in on NASDAQ, to see how it's faring. Right now it's managing to hang in positive territory again. Pretty modest. Of 19 points but 14 basis points. And retailer Kohl's really pinching the middle income consumer. Shifting their habits right now. You have them at 3197 almost 6%. >> We are back now with Kera Van Valen from Epic Investment Partners. We are talking dividend plays, we're talking investment place. Let's talk about the US regional banks. What do you think of a name like Keybank? >> Sure. We are finding the US regional banks to be fairly attractive right now. You want to find a bank that can support shareholder distributions with attractive ROEs through market cycles. We look for strong capital ratios, diversified portfolio etc. of course good management incentives. I would say they fit all of those. They have a dividend that is covered well by earnings. They return any excess capital beyond what is needed to support growth in the form of share buybacks and ROEs. While there are some concerns of what a recessionary environment could mean for the banks, we think that it's important again to look at how they are looking at their credit losses. Whether they have good credit quality, strong loss, meaningful excess capital. We think that Key is well-positioned to absorb economic stress before you start to see the components of shareholder yields and that combination of dividends and share Be compromised. >> Is that, a looking for a better word than "key". Is that the challenge for the regional banks? I'm thinking of the big Wall Street money centre banks. If that doesn't work in this quarter… We pull on this… The regional banks, are they just a little more in tune to the overall economy question mark >> Yes. I would say one of the reasons that we have found of the US regional banks more attractive recently has to do with the fact that we are facing a recession. The stocks have been under some pressure. But then it is really important to look the individual companies. So you want to find a company with a diversified loan portfolio that is not vulnerable to anyone vertical. You want to make sure that you do have low-cost funding deposit base and that you can actually start to collect and improvement in the interest margin as interest rates are rising. >> Before you go, this is sort of a Segway question. We did talk about the threat of a recession and what it could mean for regional banks overall. The viewer has a question at the impact that a recession would have on the dividend space. What you think about that? >> I think it's important to find companies that are If her to go into a recession, you want to find companies that you have sustainable business models. That have access to dividends that are being paid. Dividends are always positive contributors to equity market turns. So, a recessionary environment is to be a challenge for equity space in general. But if dividends are always positive contributors to equity market turns, then you can find companies that have growth trajectories over the next 10 years, we think those are really the more stable drives of return. There for the dividends are not necessarily called into play as growth does start to slow. >> Kera, a pleasure to have you on the show. Really enjoyed the conversation in your insights. >> Thank you. >> Our thanks to Kera Van Valen, Portfolio Manager. Stay tuned on Monday,Bart Melek will be with us. If you have any questions the meantime, email us@moneytalklive@td.com. That's all the time we have today. Thanks for joining. See you tomorrow. [music]