Topic: How To Invest

Dividend Advisor Hotline – Friday, December 8, 2023

Article Excerpt

TORONTO-DOMINION BANK, $81.01, Toronto symbol TD, is a buy. The bank is now raising your quarterly dividend by 6.3%. Starting with the January 2024 payment, investors will receive $1.02 a share instead of $0.96. The new annual rate of $4.08 yields a solid 5.0%. TD continues to benefit from rising interest rates, which is letting it earn higher interest income on its loans. In its fiscal 2023 fourth quarter, ended October 31, 2023, revenue rose 7.7%, to $13.19 billion from $12.25 billion a year earlier. However, that missed the consensus forecast of $12.48 billion. Concerns over higher interest rates and inflation have also prompted TD to set aside $878 million for potential loan losses, up 42.3% from $617 million a year earlier. If you exclude all unusual items, TD’s earnings in the latest quarter fell 16.1%, to $1.83 a share (or a total of $3.31 billion) from $2.18 a share (or $3.96 billion). That missed the consensus estimate of $1.90 a share. Earnings from Canadian…