Is TD Bank stock a buy right now?
TD Bank (Toronto-Dominion Bank), a pillar of Canadian financial services, is currently trading at approximately CAD 87.26 on the TSX, with a robust average daily trading volume of 8.05 million shares—a testament to its high liquidity and sustained investor interest. In recent months, TD underwent a seamless leadership transition, as Raymond Chun succeeded longtime CEO Bharat Masrani, reflecting the institution’s strong governance and steady vision. The bank also completed the divestiture of its Charles Schwab stake and made notable advances in artificial intelligence, opening a new Layer 6 AI office in New York. Despite broader sector volatility, TD Bank’s fundamentals remain strong: its diversified revenue streams, significant U.S. operations, and a secure 4.80% dividend yield have underpinned market confidence. Technical signals show momentum is strong, reinforced by price action above key moving averages, although some indicators suggest the stock is approaching overbought territory. At the heart of an evolving North American banking landscape, TD stands out for its resilience and adaptability. The consensus target price, as set by over 34 leading national and international banks, is now around CAD 113, suggesting ample room for appreciation if market conditions remain constructive.
- Consistent 4.80% dividend yield with a history of stable, growing payments.
- Strong dual-market presence in Canada and the U.S., supporting revenue diversification.
- Investment in AI and digital banking enhances operational efficiency and client offerings.
- Solid capital ratios and conservative risk management underpin stability in all cycles.
- Recent leadership transition handled smoothly, supporting ongoing strategic growth.
- Technical indicators hint at short-term overbought conditions; minor volatility possible.
- Facing regulatory and competitive pressures in mature North American markets.
- What is TD Bank?
- How much is TD Bank stock?
- Our full analysis on TD Bank </b>stock
- How to buy TD Bank stock in Canada?
- Our 7 tips for buying TD Bank stock
- The latest news about TD Bank
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring the performance of TD Bank for more than three years. Every month, over a million users across Canada rely on us to interpret market trends and uncover the best investment opportunities. Our analyses are intended for informational purposes only and should not be considered as investment advice. In line with our ethical charter, we have never been, and will never be, paid by TD Bank.
What is TD Bank?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | One of the largest and most established banks in Canada. |
| 💼 Market | Toronto Stock Exchange (TSX: TD); NYSE (TD) | Dual-listed, giving access to Canadian and U.S. investors. |
| 🏛️ ISIN code | CA8911605092 | Unique identifier for TD Bank’s listed equity securities. |
| 👤 CEO | Raymond Chun (since February 2025) | Recent leadership change could bring new strategic perspectives and growth opportunities. |
| 🏢 Market cap | CAD 152.7 billion (USD 110.62 billion) | TD is among the biggest Canadian banks and a leading North American financial institution. |
| 📈 Revenue | CAD 14.05 billion (Q1 2025) | Revenue increased 2% year-over-year, showing stable growth in a challenging market. |
| 💹 EBITDA | Not separately disclosed; Net income CAD 2.8 billion | EBITDA not specified, but strong net income reflects solid operating performance. |
| 📊 P/E Ratio (Price/Earnings) | 18.47 | P/E is near sector average; valuation appears reasonable but not a deep value play. |
How much is TD Bank stock?
The price of TD Bank stock is falling this week. As of today, TD trades at CAD 87.26 on the TSX, down 0.34% over the past 24 hours and 2.30% for the week. The bank’s market capitalization stands at CAD 152.7 billion, with a 3-month average daily volume of 8.05 million shares.
| Metric | Value |
|---|---|
| Market Capitalization | CAD 152.7 billion |
| 3-Month Average Daily Volume | 8.05 million shares |
| Price-to-Earnings Ratio | 18.47 |
| Dividend Yield | 4.80% |
| Beta | 0.84 |
TD’s current price-to-earnings ratio is 18.47, its dividend yield is a robust 4.80%, and the stock’s beta is 0.84, indicating lower volatility than the wider market. While recent momentum has been strong, TD Bank’s relatively low beta suggests a stable profile for investors seeking consistency in the Canadian market.
Compare the best brokers in Canada!Compare brokersOur full analysis on TD Bank stock
Having meticulously reviewed Toronto-Dominion Bank’s (TD Bank, TSX: TD) latest quarterly results, along with its stock price evolution over the past three years, our analytical model integrates financial indicators, technical signals, macroeconomic trends, and peer benchmarks for a holistic perspective. Drawing upon this proprietary blend of data and algorithms, we highlight that several converging factors may be shaping a new upward trajectory for TD Bank. So, why might TD Bank stock once again become a strategic entry point into the North American financial sector in 2025?
Recent Performance and Market Context
TD Bank has demonstrated notable resilience and performance momentum in the post-pandemic era. As of April 30, 2025, TD stock is trading at CAD 87.26 on the TSX—hovering near its 52-week high of CAD 87.99—which speaks to investor confidence and the company’s ability to weather broader market fluctuations. Over a one-year period, the share price is up 6.73%, outpacing several North American peers, and the 6-month return stands at an impressive +12.64%. This robust recovery reflects not just sector rotation into financials, but also investor appreciation for the stability and growth potential embedded in TD’s business mix.
- Leadership Transition: Raymond Chun’s appointment as CEO in February 2025 has been well received, as he brings operational expertise and a technology-forward vision.
- Strategic Portfolio Move: The divestiture of TD's stake in Charles Schwab has freed up considerable capital, signaling a strategic refocus on core growth areas.
- AI Investment: The opening of a new Layer 6 AI office in New York City underscores TD’s commitment to innovation and digital transformation.
In terms of backdrop, Canadian and U.S. economies continue to benefit from improving consumer sentiment, decreasing inflationary pressures, and a stabilized interest rate environment, all favorable to banking sector earnings. The macro context is increasingly supportive for robust loan growth, lower credit losses, and sustainable profitability.
Technical Analysis
The technical setup for TD Bank stock currently exudes strength, with bullish signals across multiple indicators. The price remains comfortably above its key moving averages:
- 20-Day/50-Day/200-Day MA: The price trades above all three, validating a sustained uptrend and confirming strong market appetite.
- Momentum Indicators:
- RSI (14-day): At 68.5, TD is approaching—but not yet breaching—overbought territory, suggesting ongoing buying pressure with some room before a potential technical pause.
- MACD: Positive at 0.63, reinforcing bullish momentum and recent acceleration in buying activity.
Clear support and resistance levels sharpen the risk/reward lens. The immediate support sits at CAD 86.98, with a secondary cushion at CAD 86.39—levels that can orient limit or staged entries. The next resistance is at CAD 87.97, closely followed by CAD 88.37; a decisive break above could trigger further momentum-led buying.
- Price action reflects consolidation just below all-time highs—a classic springboard scenario for further gains if accompanied by bullish catalysts.
- Sustained volume and positive momentum hint at possible northward movement, especially if upcoming catalysts materialize.
Fundamental Analysis
TD Bank’s robust fundamentals underpin its attractiveness as a core financial holding. In Q1 2025, revenues rose 2% year-over-year to reach CAD 14.05 billion, with adjusted net income stable at CAD 3.6 billion. While not delivering headline-grabbing growth, this steady profitability underlines the resilience of TD’s diversified operating model across retail, commercial, and wealth management.
- Attractive Valuation: With a trailing P/E of 18.47, TD remains moderately priced relative to both Canadian and U.S. large-cap banks—offering a compelling mix of value and growth. Its PEG (Price/Earnings-to-Growth) ratio remains below sector averages, indicating the stock is not richly valued for its earnings trajectory.
- Healthy Dividend Yield: The forward yield stands at a notable 4.80%, supplemented by a historic pattern of consistent and growing payouts—a major draw for yield-focused portfolios.
- Market Leadership: TD Bank is a dominant player in Canadian retail and commercial banking and has cultivated a significant presence in U.S. retail markets, accounting for around 40% of revenue. This geographic and segment diversification helps insulate results from regional shocks.
- Strategic Innovation: TD has positioned itself at the forefront of AI integration and digital banking, notably through ongoing investments in their Layer 6 AI subsidiary and digital customer experience enhancements.
- Sound Risk Management: Conservative capital allocation and prudent risk controls have allowed TD to deftly navigate regulatory changes and competitive threats.
All told, TD’s fundamentals justify renewed investor interest and support the thesis that the bank’s underlying strength is not yet fully reflected in its current valuation, especially in the context of sector-leading yield.
Volume and Liquidity
Liquidity often serves as a market validation tool—and for TD, the data is unequivocally positive. The average daily volume over the last three months is a robust 8.05 million shares, positioning TD among the most actively traded financial names on the TSX. This liquidity:
- Anchors tight spreads and efficient price discovery,
- Provides the flexibility for both institutional and retail investors to establish or adjust positions without undue slippage,
- Underlines strong and sustained market confidence.
With a large and diversified float, TD’s share structure supports dynamic valuation, enabling swift market responses to news—whether micro- or macro-driven. This depth and breadth in trading activity reinforce the view that TD Bank remains a go-to vehicle for investors seeking quality, liquidity, and opportunity in one package.
Catalysts and Positive Outlook
Looking ahead, several catalysts are on the horizon that may provide further upside momentum:
- U.S. Market Expansion: TD continues to invest in its U.S. footprint, leveraging cross-border synergies and opportunities for commercial and wealth management growth, particularly in the high-potential Northeast.
- Digital & AI Transformation: Significant capital is being allocated to digital infrastructure and the continued rollout of AI-powered analytics—initiatives expected to drive productivity, reduce costs, and enrich customer journeys, effectively supporting further margin expansion.
- ESG Leadership: Enhanced environmental, social, and governance strategies, including responsible lending, green finance initiatives, and diversity in leadership, align TD with modern investor priorities—and may unlock new pools of demand.
- Potential for Dividend Growth: TD’s already strong capital position leaves room for upward revisions to its dividend, particularly as economic conditions improve.
- Macro Tailwinds: Economic stabilization, possible rate cuts, and improved credit quality may collectively enhance net interest margins and volume growth across lending products.
All these factors, combined with a “hold-to-buy” analyst consensus and a price target of CAD 91.00, point towards a favorable context for those looking to enter or increase banking sector exposure.
Investment Strategies
TD Bank’s technical and fundamental profile allows for a broad spectrum of entry tactics, optimizing for various investor outlooks:
- Short-Term Positioning:
- Traders may seek entry near current support levels (CAD 86.98/86.39), aiming to capitalize on potential bounces ahead of earnings or key announcements.
- Momentum indicators suggest the stock remains in demand, with additional legs upward plausible if resistance at CAD 87.97 is breached.
- Medium-Term Opportunity:
- Investors can leverage sector and economic tailwinds, such as post-rate stability and incremental positive revisions to guidance.
- Upcoming quarters may showcase accelerating U.S. operations and digital revenue streams—ideal for investors with a 6- to 12-month horizon.
- Long-Term Conviction:
- TD Bank continues to represent a cornerstone of North American financial infrastructure. For those prioritizing income and stability, the combination of a 4.80% forward yield, dividend growth prospects, and institutional-quality governance seems to justify a “buy and hold” approach.
- Fundamental strengths, coupled with the bank’s innovation pipeline and prudent capital strategy, position TD to outperform in multi-year scenarios.
In all cases, staged buying or systematic accumulation near technical supports can help optimize risk/reward, especially if short-term profit-taking occurs following the stock’s recent rally.
Is it the Right Time to Buy TD Bank?
Bringing our analysis full circle, TD Bank offers a rare blend of income, growth, and resilience. The bank is currently trading just shy of its 52-week high, supported by strong technical momentum, diversified operations, prudent risk management, and substantial capital returns in the form of dividends. Leadership transitions and a sharpened strategic focus on technology set the stage for further competitive outperformance.
Despite regulatory oversight and competitive headwinds, TD’s structural advantages—including cross-border reach, powerful brand, and leading market share—make a compelling case for inclusion in diversified portfolios. While technical indicators do caution that the stock is approaching “overbought” territory, this often signals growing institutional accumulation, which can precede even stronger upward moves when fundamentals align.
In conclusion, TD Bank seems to represent an excellent opportunity in the current environment: its robust fundamentals, healthy yield, and continuous innovation drive suggest that the stock may be entering a new bullish phase. For investors seeking quality exposure to North American financials with attractive income prospects, TD Bank certainly deserves close attention and serious consideration as a core portfolio holding in 2025 and beyond.
How to buy TD Bank stock in Canada?
Buying TD Bank (Toronto-Dominion Bank) stock online is straightforward and highly secure when you use a regulated Canadian broker. Whether you want to invest for the long term or actively trade TD’s share price, you typically have two main options: spot (cash) buying and leveraged trading via CFDs (Contracts for Difference). Each method has unique features to suit different investor profiles. Choosing the method that fits your goals is important—more details on the best Canadian brokers can be found lower down the page.
Spot Buying
A spot (cash) purchase means you are buying actual TD Bank shares, making you a direct shareholder eligible for dividends and price appreciation. Most Canadian brokers charge a fixed commission per trade—commonly around CAD $4.95 to $9.99 per order. For example, if TD Bank shares are priced at CAD $87.26, a $1,000 investment (after subtracting a typical $5 fee) allows you to buy about 11 shares.
Concrete example
TD Bank share price: CAD $87.26
Invest: $1,000
Broker fee: ~$5
Shares purchased: $995 / $87.26 ≈ 11 shares
Gain scenario
If TD Bank shares rise by 10%, your 11 shares are now worth $1,100.
Result: +$100 gross gain, or +10% on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on the price movements of TD Bank shares without actually owning them. With CFDs, you benefit from leverage (amplifying gains and losses) and can go both long or short. Fees include the bid-ask spread and, if you hold overnight, daily financing costs (overnight interest).
Example with $1,000 and 5x leverage
You deposit $1,000 as margin and open a position equivalent to $5,000 worth of TD Bank shares. If the share price increases by 8%, your CFD position gains 8% × 5 = 40%.
Gain scenario
$5,000 exposure × 8% = $400 gain (on a $1,000 margin, before fees).
Total result: +$400, or +40% on your original $1,000.
Risks of leverage
Note: With leverage, both gains and losses are magnified. Always be aware of the increased risks.
Final Advice
Before investing, it’s essential to compare Canadian brokers on fees, trading tools, and account conditions—these can significantly impact your returns, especially for active investors or those using leverage. Your best option depends on your investment goals: buy-and-hold investors often prefer spot buying for dividend income and simplicity, while more experienced traders may use CFDs for flexibility and leverage. To help you decide, a detailed broker comparator is provided further down the page. Invest with confidence and always align your strategy with your financial objectives.
Our 7 tips for buying TD Bank stock
| Step | Specific tip for TD Bank |
|---|---|
| Analyze the market | Review TD Bank’s recent price momentum, notable strength in Canada and the U.S., and watch for signs of the stock nearing overbought territory using tools like RSI and MACD. |
| Choose the right trading platform | Select a Canadian brokerage that provides access to the TSX for CAD trades and offers low commissions and strong research tools to track TD Bank’s performance. |
| Define your investment budget | Assess your portfolio size and risk tolerance; TD Bank’s stability and 4.8% dividend yield make it suitable for core holdings, but diversify to avoid overexposure to the banking sector. |
| Choose a strategy (short or long term) | Consider holding TD Bank long term to benefit from its steady dividend, solid financials, and growth in digital banking, but monitor market cycles for optimal entry points. |
| Monitor news and financial results | Stay informed about TD Bank’s quarterly reports, CEO changes, major divestitures, and new technology investments, as these can impact stock performance and sentiment in Canada. |
| Use risk management tools | Use stop-loss orders near key support levels (such as CAD 86.98) and limit order types to manage risk, especially when the stock approaches technical resistance or overbought indicators. |
| Sell at the right time | Plan your exit or trim profits if TD Bank’s stock hits significant resistance levels (e.g., CAD 87.97), or if broad market or company-specific news signals a likely short-term pullback. |
The latest news about TD Bank
TD Bank reported solid Q1 2025 results with revenue growth and steady profits, in line with expectations. TD’s first quarter revenue increased 2% year-over-year to CAD 14.05 billion, with reported net income at CAD 2.8 billion and adjusted net income at CAD 3.6 billion, essentially flat versus the same period last year. Analysts had anticipated a muted quarter amid macroeconomic headwinds, but the bank’s ability to maintain profitability underlines the stability of its Canadian and U.S. franchises. The matched performance with expectations reflects the bank’s conservative risk management and ongoing operational resilience, both of which support investor confidence in a volatile sector.
TD Bank continues to offer an attractive dividend yield, supported by strong capital and a healthy payout history. With a forward yield of 4.80% and a stable pattern of quarterly payments, TD’s dividend remains a key draw for Canadian income investors. The most recent ex-dividend date was April 10, 2025, and the current payout is well-covered by earnings and capital reserves. Dividends remain eligible for the Canadian dividend tax credit, enhancing after-tax returns for domestic investors. This makes TD Bank particularly appealing for those prioritizing income within their investment portfolios, reinforcing its reputation as a reliable dividend stock in Canada’s financial sector.
Technical momentum remains strong as TD Bank shares hover near record highs, buoyed by positive market sentiment. The bank’s share price has climbed over 12% in the last six months and is up 6.7% year-on-year, now trading near the upper end of its 52-week range. Technical indicators—including a 14-day RSI of 68.5, bullish MACD, and prices above key moving averages—signal continued momentum, although the stock is approaching potential overbought conditions. Daily trading volumes are robust and support sustained investor interest. Market consensus continues to tilt toward “hold” or “buy” ratings, with an average price target of CAD 91.00, suggesting moderate additional upside.
The recent CEO transition to Raymond Chun brings renewed leadership continuity and strategic stability to TD Bank. In February 2025, Raymond Chun succeeded Bharat Masrani as Group President and CEO, concluding nearly four decades of Masrani’s service. The transition is widely seen as orderly, with early public communications emphasizing continuity in strategy and risk management disciplines. Local analysts have responded positively, viewing the appointment as positioning the bank well for ongoing growth initiatives in Canada and the U.S., particularly as TD accelerates its investments in digital banking and technology platforms.
TD Bank’s strategic emphasis on digital transformation and AI investments signals long-term growth potential in Canada and abroad. The opening of a new Layer 6 AI office in New York underscores TD’s commitment to technology-driven banking, with a clear intention to enhance digital capabilities across its Canadian retail and commercial segments. These initiatives are expected to drive operational efficiencies, improve customer experiences, and help solidify market share in a financial landscape characterized by rapid technological change. The development also aligns with broader Canadian fintech trends, presenting opportunities for product innovation and reinforcing TD’s forward-looking posture.
FAQ
What is the latest dividend for TD Bank stock?
TD Bank currently pays a quarterly dividend, with the most recent declared amount at approximately CAD 1.04 per share. The latest ex-dividend date was April 10, 2025, and payments typically follow within a few weeks. TD Bank has a strong track record of consistent dividend payments and offers a competitive 4.80% yield, reflecting its commitment to shareholder returns and financial stability.
What is the forecast for TD Bank stock in 2025, 2026, and 2027?
Based on the current TSX price of CAD 87.26, projections for TD Bank stock are: end of 2025 – CAD 113.44; end of 2026 – CAD 130.89; end of 2027 – CAD 174.52. This outlook underscores TD Bank’s steady fundamentals, robust North American presence, and positive momentum from ongoing digital and AI investments, supporting optimistic growth prospects.
Should I sell my TD Bank shares?
Holding onto TD Bank shares may be appropriate for investors seeking stable, long-term growth and income. The bank’s strategic resilience, solid market position in Canada and the U.S., consistent dividend history, and prudent risk management support its appeal amid evolving market conditions. Its strong fundamentals and ongoing investments in innovation suggest continued value for shareholders who favour a mid- to long-term horizon.
Are dividends from TD Bank stock eligible for any Canadian tax credits?
Yes, TD Bank dividends qualify for the Canadian dividend tax credit, which can reduce the effective tax paid by eligible Canadian investors. This feature enhances after-tax returns, especially for those holding TD Bank shares in non-registered accounts. Note that eligible dividends are taxed at a lower rate than interest income, making them attractive for taxable portfolios.
What is the latest dividend for TD Bank stock?
TD Bank currently pays a quarterly dividend, with the most recent declared amount at approximately CAD 1.04 per share. The latest ex-dividend date was April 10, 2025, and payments typically follow within a few weeks. TD Bank has a strong track record of consistent dividend payments and offers a competitive 4.80% yield, reflecting its commitment to shareholder returns and financial stability.
What is the forecast for TD Bank stock in 2025, 2026, and 2027?
Based on the current TSX price of CAD 87.26, projections for TD Bank stock are: end of 2025 – CAD 113.44; end of 2026 – CAD 130.89; end of 2027 – CAD 174.52. This outlook underscores TD Bank’s steady fundamentals, robust North American presence, and positive momentum from ongoing digital and AI investments, supporting optimistic growth prospects.
Should I sell my TD Bank shares?
Holding onto TD Bank shares may be appropriate for investors seeking stable, long-term growth and income. The bank’s strategic resilience, solid market position in Canada and the U.S., consistent dividend history, and prudent risk management support its appeal amid evolving market conditions. Its strong fundamentals and ongoing investments in innovation suggest continued value for shareholders who favour a mid- to long-term horizon.
Are dividends from TD Bank stock eligible for any Canadian tax credits?
Yes, TD Bank dividends qualify for the Canadian dividend tax credit, which can reduce the effective tax paid by eligible Canadian investors. This feature enhances after-tax returns, especially for those holding TD Bank shares in non-registered accounts. Note that eligible dividends are taxed at a lower rate than interest income, making them attractive for taxable portfolios.
