TD Bank shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

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If you are interested in investing in the financial sector in Canada, TD Bank stock may be an option to consider based on both its yield and performance.

How much can you make with TD Bank stock?

Get up-to-date and precise information on TD Bank stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in TD Bank: Our key take-aways

Stock Exchange: TSX

  • Stock Index: S&P/TSX 60
  • Dividend 2021: $2,509
  • Dividend forecast 2022: NC
  • Performance over 1 year: +26.19

Should I buy TD Bank stock?

TD Bank (Toronto Dominion) is one of the best yield stocks in the financial sector and also offers the potential for attractive capital gains.

With a steadily rising dividend and a yield close to 4%, this stock is suitable for investors who want to generate regular income.

But it is also suitable for investors looking for long-term capital gains, with analysts expecting a rising share price.

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How can I buy shares in TD Bank ?  

To buy TD Bank on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add TD Bank to your stock portfolio.

To invest in TD Bank, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are TD Bank shares?

See price chart below to follow TD Bank stock price in real time.

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Why TD Bank shares could go up:

There are a number of macro and microeconomic factors that suggest that TD Bank's stock price could rise in the medium to long-term, including

  • An industry leader: TD Bank is currently the largest bank in Canada in terms of assets, and as such has a strong public image.
  • A strong position in North America: TD also enjoys a solid and stable position in the North American market as a whole, giving it a clear competitive advantage over its Canadian and U.S. rivals.
  • Sustainable revenue: The group receives sustainable revenue from its national banking networks located in Canada, providing good revenue visibility.
  • High Yield: TD Bank stock also attracts investors with its dividend yield, which is above the industry average.
  • A large company: The group, through its subsidiaries, currently employs more than 79,000 people and has no less than 19 million customers worldwide.
  • Strategic acquisitions: TD Bank regularly makes strategic acquisitions that contribute to its expansion in certain segments, as was the case with the acquisition of MBNA in credit cards.
  • Strong expansion in the United States: the group continues to expand in the U.S. market with the construction of the U.S. retail banking network, which represents an interesting growth opportunity.

Why TD Bank shares could go down:

In addition to the rather optimistic elements we have just mentioned, TD Bank also has various weak points that could lead to a drop in its share price, including

  • A weak international presence: while TD is well established in North America, its exposure in the rest of the world is very limited compared to that of other large competing banks.
  • Strong competition: TD Bank Group also faces very strong competition from large industry players, which limits its ability to gain market share.
  • High market volatility: The North American market is currently experiencing significant and increasing volatility, which may pose a threat to the Group's business.
  • Penalizing regulatory changes: Finally, regulatory changes in the United States as well as regulatory changes concerning mortgages and credit in Canada may also impact the group's profitability.

Can I buy TD Bank stock online?

Yes! You can buy TD Bank shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

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How can I sell my TD Bank shares? 

If you wish to sell TD Bank shares, you must first hold them in your stock portfolio. This is because short selling is only allowed in Canada with a margin account and is not available through traditional investment vehicles.

You can, however, speculate on the decline of this stock by using derivative products such as CFDs or options.

What investment vehicles in Canada can hold TD Bank stock? 

TD Bank shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

TD Bank shares can be purchased directly online through a broker. In this case, you simply place a purchase order for the number of units you wish to add to your stock portfolio.

It is also possible to invest in TD Bank stock as part of a diversification strategy with ETFs and mutual funds that include this stock.

TD Bank share price history over 10 years:

Time periodGrowthHighLow
1 week-5.48%106.2098.46
1 month-5.95%109.0898.46
3 months2.50%109.0893.15
6 months19.91%109.0880.68
1 year26.19%109.0877.73
3 years31.84%109.0849.01
5 years43.39%109.0849.01
10 years20.85%109.0847.35
TD Bank 10-year performance

TD Bank dividends and payment dates

In 2021, the TD Bank Group paid a dividend of $2.58 per share to its shareholders, which corresponds to a yield of 3.33%.

The dividend is paid quarterly, with four payments per year in January, April, July and October.

The group has not yet communicated the amount of its dividend for the 2021 fiscal year, which will be paid in 2022. However, a first payment of $0.89 per share was made to shareholders in January.

Dividend: payout 2021Payout 1Payout 2Payout 3Payout 4
Ex-dividend date07/01/202108/04/202108/07/202107/10/2021
Date:31/01/202130/04/202131/07/202131/10/2021
Dividend per stock$0.79 per stock$0.79 per stock$0.79 per stock$0.79 per stock
TD Bank 2021 Dividends: dates and amounts
Dividend: payout 2022Payout 1Payout 2Payout 3Payout 4
Ex-dividend date07/01/2022PendingPendingPending
Date:31/01/2022PendingPendingPending
Dividend per stock$0.89 per stockPendingPendingPending
TD Bank 2022 Dividends: dates and amounts

What is the dividend yield for TD Bank over the last 10 years?

YearDividend amountVariancePerformance
20121.4379.32%3.51
20131.4799.88%3.75
20141.697.03%3.25
20151.595-5.62%3.52
20161.6241.82%3.93
20171.80711.27%3.65
20182.03612.67%3.48
20192.1817.12%4.05
20202.3146.1%5.24
20212.5098.43%3.63
TD Bank divident history

The yield on TD Bank shares is obtained by dividing the annual dividend by the annual average price.

A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.

Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year

The 10-year average return = Sum of annual returns ÷ 10

What analysts are saying about TD Bank stock:

A critical analysis of TD Bank stock:

Fundamental analysis of the TD Bank share currently gives us relatively optimistic signals in the long-term with the following indicators

  • Strong profitability: Based on the group's most recent reported results, the margin level is higher than the industry average, indicating strong profitability for the company.
  • High Yield: TD Bank's current and projected stock performance is one of the best in the industry.
  • Upwardly Revised Estimates: Analysts have repeatedly revised their estimates for TD Bank Group's revenue and earnings upward in recent months.
  • Converging estimates: the estimates and opinions of analysts covering TD are strongly converging and similar, which reflects the good visibility of the group's activities.
  • A price target that is increasing: In addition to revenue estimates, analysts have also revised upwards their average price target for the stock over the past few months.
  • Weak revenue growth: Although real, earnings and revenue growth are expected to be weaker in the coming years.

A technical analysis of TD Bank stock:

The technical analysis of the TD Bank share price also gives us interesting buy signals in the medium and long-term with the following indicators:

  • The RSI indicator is sending back an important buy signal and is located at the 69.835 level.
  • The short, medium and long-term stochastic indicators are also sending a strong buy signal on this stock
  • The MACD is at 6.77, which is also a strong buy signal
  • All simple and exponential moving averages over all time frames are sending a buy signal
  • The next technical resistances are currently located at 107.43 and 112.59 and the next supports are located at 98.75 and 95.23

Who is TD Bank?

The TD Bank Group or Toronto Dominion Bank, also known as The Bank, is a Canadian bank operating in North America.

The group is active in the retail banking sector in Canada and the United States;

  • The retail segment in Canada provides personal and commercial banking, wealth management and insurance services to customers throughout the Canadian market.
  • The personal banking segment offers financial products and advice through its network of automated teller machines or ATMs, telephone banking, digital banking and mobile banking.
  • The U.S. Retail segment offers the Bank's personal and commercial banking operations under the TD Bank brand as well as wealth management services in the United States.
  • The Wholesale Banking segment offers a range of capital markets and corporate banking services, as well as investment banking and advisory services on strategic acquisitions and divestitures.

Who are TD Bank’s competitors?

TD Bank has several major competitors in its industry and the following are the major Canadian banks that threaten its market share:

  • RBC: Royal Bank of Canada is currently one of the largest financial institutions in Canada by assets and market capitalization and is also one of the largest diversified financial services companies in North America.
  • Scotiabank: Scotiabank, or Bank of Nova Scotia, operates under a variety of brands and is also one of the leading banking and financial services companies in Canada and North America. It is also the most international of the Canadian banks.
  • BMO: Bank of Montreal or BMO is a very old financial institution in Canada. Today, it operates nearly 1,100 branches across Canada.
  • CIBC: The Canadian Imperial Bank of Commerce or CIBC is one of the largest banks in Canada but the group also operates in the rest of the world with a strong presence in the United States, the Caribbean and the United Kingdom.
  • Desjardins Credit Union : This credit union system is considered one of the largest financial institutions in the world and is also one of the largest employers in Canada.
  • National Bank of Canada: Finally, the National Bank of Canada or NBC is a group that offers financial services to individuals and businesses on the national market and specialized services internationally. It offers a wide range of investment banking services for large corporations.

Who are TD Bank’s partners?

TD Bank also regularly enters into strategic partnerships with other companies in order to boost its growth and profitability. Some of its recent partners include

  • Starbucks: The banking group has entered into a one-year partnership with Starbucks Canada to provide TD® Aeroplan® Visa cardholders with more rewards, including 50% more Aeroplan points for purchases made at Starbucks stores in Canada.
  • Microsoft: TD has also partnered with Microsoft in a strategic initiative to use Microsoft Azure as a cloud platform. TD intends to provide its technology and design teams with tools that provide secure, agile and flexible access to data and artificial intelligence resources to better adapt and meet evolving customer needs.
  • RMI: Finally, the group also announced a partnership with RMI's Center for Climate Aligned in 2021 to help develop practical and measurable solutions to help transition to a more sustainable energy platform and economy.