Topic: How To Invest

Dividend Advisor Hotline – Friday, December 3, 2021

Article Excerpt

TORONTO-DOMINION BANK, $95.59, Toronto symbol TD, is a buy. Canada’s banking regulator—the Office of the Superintendent of Financial Institutions (OFSI)—has lifted the restrictions on capital distributions it placed on banks and insurers in March 2020 due to COVID-19 uncertainty. That’s why TD is now raising your dividend by 12.7%. Starting with the January 2022 payment, investors will receive $0.89 a share instead of $0.79. The new annual rate of $3.56 yields 3.7%. What’s more, the bank plans to buy back up to 2.7% of its common shares over the next year. Meantime, TD continues to benefit from increasing demand for new loans and credit cards as the economy re-opens. It’s also reserving some of its previous loan-loss provisions. Those provisions amounted to a net credit of $123 million in quarter ended October 31, 2021, compared to a $917 million charge in the year-earlier quarter. As a result, earnings in the latest quarter rose 30.6%, to $2.09 a share (or a total of $3.87 billion)…