Topic: How To Invest

Dividend Advisor Hotline – Friday, May 2, 2025

Article Excerpt

TORONTO-DOMINION BANK, $88.34, Toronto symbol TD, remains a buy for patient, income-seeking investors. The bank increased your dividend by 2.9% with the January 2025 payment, to $1.05 a share from $1.02. The new annual rate of $4.20 yields a solid 4.8%. In February 2025, TD sold its entire 10.1% stake in Charles Schwab Corp. (New York SCHW) for about $14 billion U.S. (or $20 billion Canadian). It will use $8 billion of that cash to buy back 100 million of its common shares (about 5.7% of the total outstanding). As a result of that sale, the bank expects Schwab will contribute $83 million (Canadian) to its earnings in the quarter, ending April 30, 2025, down 63.8% from $229 million a year earlier. The sale of the Schwab shares will help TD cope with the asset cap imposed on its U.S. operations as part of a settlement over lapses in its anti-money laundering processes. The bank also paid a fine of $3.09 billion U.S. The stock…