Why Toronto-Dominion Bank (TD) is a Great Dividend Stock Right Now

Core Insights - The primary focus for income investors is generating consistent cash flow, particularly through dividends, which are distributions of a company's earnings to shareholders [1][2] Company Overview - Toronto-Dominion Bank (TD), headquartered in Toronto, has experienced a price change of 65.53% this year and currently pays a dividend of $0.75 per share, resulting in a dividend yield of 3.42% [3] - The bank's dividend yield surpasses the Banks - Foreign industry's yield of 2.78% and the S&P 500's yield of 1.45% [3] Dividend Performance - TD's current annualized dividend of $3.02 has increased by 1.2% from the previous year, with an average annual increase of 5.24% over the last five years [4] - The current payout ratio for TD is 48%, indicating that it paid out 48% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for TD's earnings in 2025 is $6.42 per share, reflecting a year-over-year earnings growth rate of 7.36% [5] Investment Considerations - TD is positioned as an attractive dividend investment, especially compared to high-growth firms that typically do not offer dividends [6] - The stock holds a strong Zacks Rank of 2 (Buy), indicating a favorable investment opportunity [6]