Despite these outsized returns, TD Bank offers you a tasty dividend yield of 3.9%, considering its annual dividend per share of $4.21 in fiscal 2025 (ending October). So to earn $1,000 in annual dividends, you’d need to own 238 shares of the banking giant, which today would be worth an investment of more than $27,000.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| TD bank | $113.72 | 238 | $1.0525 | $250.49 | Quarterly |
Although TD Bank is part of a cyclical industry, the company has increased its annual dividend from $2.16 per share in 2016 to $4.21 per share in 2025. Analysts predict the payout will rise to $4.55 per share in 2029.
In November 2016, you should have purchased 463 shares of TD worth $27,645. Today, 463 shares of TD would help you earn $1,950 in annual dividends, increasing the yield at cost to more than 7%.
Let’s see if you should own TD Bank stock right now.
Are TD Bank shares still a good buy right now?
Toronto-Dominion Bank is undertaking a major transformation aimed at regaining its position as the top-performing Canadian lender after years of declining performance.
CEO Raymond Chun outlined an ambitious plan at the bank’s investor day to increase return on equity to 16% by fiscal year 2029 while restructuring the organization’s cost base.
The strategy represents a decisive pivot for TD, which has seen its ROE (return on equity), earnings growth and shareholder returns lag those of its peers in recent years.
The bank is targeting annual cost savings of $2 billion to $2.5 billion through a comprehensive program that touches every aspect of its operations. TD is committed to structural change through distribution transformation, automation, the use of artificial intelligence and supplier consolidation.
The company expects to achieve an efficiency ratio in the mid-50s, down from the current 58%, with positive operating leverage each year. Specifically for the 2026 financial year, TD assumes cost growth of 3% to 4% and an ROE of 13% as the transformation gains momentum.
Chief Risk Officer Ajai Bambawale emphasized that the bank’s credit quality remains strong despite economic uncertainty due to tariffs and trade tensions.
TD has built up $600 million in reserves over three quarters to address potential impacts, including more than $400 million for industries exposed to tariffs and nearly $200 million for consumer impacts. The bank’s real estate-backed loan portfolio shows resilience with an average credit score of 792, and only 1% of borrowers have scores below 650, combined with a loan-to-value ratio of more than 75%.
Regarding the 2026 interest rate repricing period, when 29% of mortgages mature, Bambawale noted that 64% of customers will see lower payments, while 93% of those facing higher payments will remain within stress test thresholds.
Are TD Bank Stocks Currently Undervalued?
Analysts who follow TD Bank stock predict that adjusted earnings per share will rise from $7.81 in fiscal 2024 to $11 per share in fiscal 2029. Today, TD Bank stock trades at 13.2 times forward earnings, which is higher than the five-year average of 10.9 times.
If TD Bank stock returns to its historical average, it should trade around $121 in October 2028, indicating 8% upside potential. If we adjust the dividends, the cumulative return could be closer to 20%.
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