Toronto-Dominion Bank Offers 3.2% Yield Following 5.5% Dividend Increase
Toronto-Dominion Bank is paying a quarterly dividend of $0.79 per share, yielding 3.2% compared with a 2.53% industry average and the S&P 500’s 1.35%. Its annualized $3.15 dividend is up 5.5% year-over-year with a 47% payout ratio and 2026 EPS is forecast at $6.87.
1. Dividend Metrics
TD is distributing a $0.79 quarterly dividend, annualized to $3.15 per share, representing a 3.2% yield. The dividend payout ratio stands at 47% of trailing 12-month earnings per share, reflecting a balanced approach to returning income while retaining capital for growth.
2. Dividend Growth
The annualized dividend of $3.15 marks a 5.5% increase from the prior year. Over the last five years, the bank has raised its dividend three times on a year-over-year basis for an average annual increase of 5.24%.
3. Earnings Outlook
Consensus estimates project fiscal 2026 earnings at $6.87 per share, implying year-over-year growth of 14.88%. Continued earnings expansion is expected to support future dividend increases and strengthen the bank’s capital position.
4. Yield Comparison and Market Context
At 3.2%, TD’s yield outpaces the Banks - Foreign industry average of 2.53% and the S&P 500’s 1.35%. In a rising rate environment, higher-yielding financial stocks may face pressure, making dividend coverage and payout ratios key metrics for investors.