Updating your Income-Growth Payers: Toronto-Dominion Bank

Article Excerpt

TORONTO-DOMINION BANK $87 is a buy. The lender (Toronto symbol TD; Income-Growth Payer Portfolio; Finance sector; Shares outstanding: 1.8 billion; Market cap: $156.6 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Highest; www.td.com) last raised your quarterly dividend with the January 2022 payment. Investors now receive $0.89 a share, up 12.7% from $0.79. The new annual rate of $3.56 yields 4.1%. The bank recently agreed to buy U.S. banking firm First Horizon Corporation (New York symbol FHN). The purchase will make TD’s banking operations the sixth largest in the U.S. TD will pay $13.4 billion U.S. for First Horizon. If shareholders and regulators approve, it expects to complete the purchase by November 27, 2022. Meantime, the bank continues to benefit from rising loan demand and credit card use as the economy re-opens in the wake of COVID-19 shutdowns. In its fiscal 2022 second quarter, ended April 30, 2022, revenue rose 7.9%, to $11.04 billion from $10.23 billion a year earlier. TD is also setting aside more funds to cover future bad…

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