Company Overview - Toronto-Dominion Bank (TD) is based in Toronto and operates in the Finance sector, with a year-to-date share price change of 38.82% [3] - The bank currently pays a dividend of $0.77 per share, resulting in a dividend yield of 4.18%, which is significantly higher than the Banks - Foreign industry's yield of 2.84% and the S&P 500's yield of 1.51% [3] Dividend Performance - The current annualized dividend of TD is $3.09, reflecting a 2.2% increase from the previous year [4] - Over the past five years, TD has increased its dividend three times on a year-over-year basis, achieving an average annual increase of 5.24% [4] - The current payout ratio for TD is 53%, indicating that the bank pays out 53% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - TD is expecting earnings to expand in the current fiscal year, with the Zacks Consensus Estimate for 2025 projected at $5.75 per share, representing a year-over-year earnings growth rate of 0.17% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] - While high-growth firms or tech start-ups typically do not provide dividends, larger, established companies like TD are viewed as strong dividend options [6] - TD is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]
Why Toronto-Dominion Bank (TD) is a Top Dividend Stock for Your Portfolio