Dividend Increase Toronto Dominion Bank

Dividend increase Toronto Dominion Bank

At the 2nd of March the board of Toronto Dominion Bank (TD) decided to increase the quarterly dividend from CAD 0,55 to CAD 0,60 per quarter. This means an increase of CAD 0,05 per share per year which translates to a 9,1% increase. The dividend is paid on May the 1st 2017 to shareholders of record on April the 10th 2017. This is the 6th consecutive year in which RY increases the quarterly dividend. Much more impressive, the company never ever reduced its dividend and it’s paying a dividend for a very long time!

 

The Pursuit

Since I have 13 shares this increase means that my yearly dividend for Toronto Dominion Bank is now CAD 31,20. Up from CAD 28,60 or a CAD 2,60 increase in yearly dividends. After taxes I will receive $ 26,52 per year from the company.

This increase means TD currently yields 3,48% and my yield on cost rises to 4,31%.

 

Conclusion

Toronto Dominion Bank is one of the safest and most conservative banks in the world. At the same time it is growing rapidly and creating a lot of share holder value. My Yield on Cost went up from 3,95% to 4,31% with just 1 increase and I have roughly 25% in unrealized capital gains. I just wish I would have bought more a year ago. Now the problem is the same as with the Royal Bank of Canada that just increased its dividend last week. The company became a bit pricey to buy more at this moment. Although I would really like some more exposure in Canada.

But nothing to complain about. Over a 9% dividend increase in just 1 year is just great! Combine that with the 7,4% raise I received from RY and my banking sector is doing well for me.

Do you own the Toronto Dominion Bank? What do you think of the dividend growth and what do you think of the valuation? Leave your comment below!

 

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