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Introduction to Toronto Dominion Bank
The Toronto-Dominion Bank, better known as TD Bank, is one of the largest banks in Canada. It was established in 1855 and has been offering its services to Canadians ever since. It is a publicly traded company and is part of the Toronto Stock Exchange. TD Bank offers a wide range of financial products and services, including banking, personal finance, investments, mortgages, and insurance. It also operates one of the largest networks of branches and automated teller machines (ATMs) in the country. TD Bank has an extensive history of paying dividends to its shareholders.
TD Bank Dividend History
TD Bank has been paying dividends to its shareholders for over 150 years. The bank has increased its dividend on an annual basis for the past 44 years. TD Bank’s dividend is currently paid on a quarterly basis. The most recent dividend was paid out on March 22, 2021 and was in the amount of 0.84 Canadian dollars per share. This dividend was up from the previous quarter’s dividend of 0.78 Canadian dollars per share. TD Bank has also increased its dividend over the last decade. In 2020, the bank paid out a total of 3.36 Canadian dollars per share in dividends. This was an increase of 8.3% from the previous year’s dividend of 3.10 Canadian dollars per share.
Dividend Yield
TD Bank’s dividend yield is currently 4.74%. This is higher than the average dividend yield of the S&P/TSX Composite Index, which currently stands at 3.15%. TD Bank’s dividend yield is also higher than the average dividend yield of the S&P 500 Index, which is currently 1.82%. The bank’s dividend yield is attractive to income-seeking investors who are looking for a reliable source of income.
Dividend Growth Rate
TD Bank’s dividend growth rate has been steadily increasing in recent years. The bank has increased its dividend by an average of 7.5% annually over the last five years. This is higher than the average dividend growth rate of the S&P/TSX Composite Index, which is currently 4.3%. TD Bank’s dividend growth rate is also higher than the average dividend growth rate of the S&P 500 Index, which is currently 2.3%. This indicates that the bank is committed to increasing its dividend on an annual basis.
Dividend Payout Ratio
TD Bank’s dividend payout ratio is currently 50.6%. This indicates that the bank is paying out half of its earnings as dividends. This is lower than the average dividend payout ratio of the S&P/TSX Composite Index, which is currently 66.2%. TD Bank’s dividend payout ratio is also lower than the average dividend payout ratio of the S&P 500 Index, which is currently 43.6%. This indicates that the bank has room to increase its dividend in the future.
Conclusion
TD Bank has an extensive history of paying dividends to its shareholders. The bank has increased its dividend on an annual basis for the past 44 years. TD Bank’s dividend yield is currently 4.74%, which is higher than the average dividend yield of the S&P/TSX Composite Index and the S&P 500 Index. The bank has also increased its dividend by an average of 7.5% annually over the last five years. TD Bank’s dividend payout ratio is currently 50.6%, which indicates that the bank has room to increase its dividend in the future.
Disclaimer
The information contained in this article is for informational purposes only and should not be taken as investment advice. Investing in stocks carries a risk of loss and investors should always do their own research before making any investment decisions.