Stock Analysis & Ideas

Love Dividends? Toronto-Dominion Bank (NYSE:TD) Stock Could Be a Reliable Bet

Story Highlights

Toronto-Dominion Bank stock has a remarkable dividend payment and growth history. Its payouts are supported by its growing earnings base.

Investors seeking worry-free income should consider high-quality dividend-paying stocks. While several companies pay a reliable dividend, we’ll restrict ourselves to Toronto-Dominion Bank (NYSE:TD)(TSE:TD) in this article. Investors should rely on this Canadian banking giant because of its solid track record of dividend payments, growth and ability to grow earnings. 

It’s worth highlighting that Toronto-Dominion Bank has been uninterruptedly paying dividends for 164 years. Furthermore, its dividends have increased at a CAGR of 11% since 1996.

TD’s dividends are supported by its growing earnings base. Notably, Toronto-Dominion Bank’s adjusted earnings have increased at a CAGR of 9.5% in the past five years.  

Looking ahead, its diversified business mix, strong balance sheet, and solid credit quality will support its revenue and earnings growth as well as dividend payouts. 

What is the Target Price for TD stock?

Toronto-Dominion Bank stock has an average price target of $72.89, implying 17.62% upside potential. Meanwhile, it commands a Moderate Buy consensus rating on TipRanks based on five Buy and six Hold recommendations. 

TD stock has negative signal from hedge fund managers who have reduced their exposure to it. Per TipRanks’ data, hedge funds sold 49.1K TD stock last quarter. Nevertheless, insiders bought Toronto-Dominion stock worth $732.3K during the same period. 

Overall, TD stock has an Outperform Smart Score of eight out of 10 on TipRanks, implying it is more likely to beat market averages.

Conclusion

Toronto-Dominion Bank’s solid payout history and dividend yield of 4.4% makes it an attractive investment. Investors should note that TD’s ex-dividend date is on October 6, implying investors should buy it before this date to receive the dividend (the payout date is October 31).  

Besides TD, see which other stocks have an ex-dividend date in October 2022. Investors can also leverage TipRanks’ Dividend Yield Calculator.

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