Toronto-Dominion Bank Dividend Increase

TD Bank

Toronto-Dominion Bank (TD) announced a dividend raise from a quarterly amount of $0.47 to $0.51, an increase of 8.5%. The new dividend is payable on Apr 30, 2015 for shareholders on record on Apr 7, 2015, with an ex-div date on Apr 3, 2015.

From the earnings release statement:

FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter a year ago:

  • Reported diluted earnings per share were $1.09, compared with $1.07.
  • Adjusted diluted earnings per share were $1.12, compared with $1.06.
  • Reported net income was $2,060 million, compared with $2,042 million.
  • Adjusted net income was $2,123 million, compared with $2,024 million.

FIRST QUARTER ADJUSTMENT (ITEMS OF NOTE)

The first quarter reported earnings figures included the following items of note, compared with the first quarter a year ago:

  • Amortization of intangibles of $63 million after tax (3 cents per share), compared with $61 million after tax (3 cents per share).

We are pleased with our start to 2015, with adjusted earnings of $2.1 billion, up 5% from the same quarter last year,” said Bharat Masrani, Group President and Chief Executive Officer. “Our results reflect strong retail earnings on both sides of the border and strong fundamentals.

Our first quarter results showcase the power of our franchise model in the face of a continuously challenging environment,” said Masrani. “The dividend increase demonstrates TD’s ability to grow earnings over the long term. We will continue taking advantage of growth opportunities, increasing productivity, investing in the future of our business and meeting the evolving needs of our customers.

My portfolio consists of 25 shares of TD, which increases my annual dividends from $47 to $51, an increase of $4.

17 thoughts on “Toronto-Dominion Bank Dividend Increase

  1. Nice one! Congrats on the raise in this excellent company. This seems to set the tone for those who are expecting “headwinds” in the major Canadian banks. The price can move all it wants, but I’m looking forward to many increases to come 🙂

    • Ryan,
      Its good to see that the banks are increasing their dividends on par with previous years. Im sure the higher spread between interest rates and prime rates plays a big part in maintaining their profits. These are the things that annoy me as a customer, but love as a shareholder.

      R2R

  2. I haven’t been eyeing this stock as closely as I perhaps should have been and didn’t realize there was a great opportunity at under $40/share recently.

    But even today, the dividend yield is more than plenty solid and the growth rate appears to be strong as well. Right now, I’m contemplating swapping out Emerson Electric (EMR) as an income producing stock for TD. Curious to know what your thoughts are. I realize they operate in entirely different industries, but just speaking from a dividends perspective.

    Thanks and enjoy the raise!

    • Hi FIFighter,
      That is a hard comparison – between two different industries. For now, it appears that Financials are more attractively valued and provide better growth/income play and TD sure looks better positioned than EMR just from a dividend perspective. I realize that EMR is a global industrial player (although Im not sure how diversified their revenues are). As far as TD goes, while there are some headwinds present facing Canadian economy, I dont think the banks will collapse as we saw in the last decade in the US and some EU countries. I am fairly confident that the Canadian banks are going to be strong going forward. I’d suggest nibbling smaller positions over the year – thats what Im doing 🙂

      Hope that helps
      R2R

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