Topic: How To Invest

Dividend Advisor Hotline – Friday, January 19, 2024

Article Excerpt

TORONTO-DOMINION BANK, $81.17, Toronto symbol TD, is a buy. With the January 31, 2024 payment, TD will raise your quarterly dividend by 6.3%. Investors will then receive $1.02 a share instead of $0.96. The new annual rate of $4.08 yields a solid 5.0%. The bank merged its 43%-owned U.S. online brokerage firm TD Ameritrade Holding Corp. (Nasdaq symbol AMTD) with rival Charles Schwab Corp. (New York symbol SCHW) in October 2020. TD now owns 12.0% of the combined firm. Schwab is also a bank, and its depositors continue to move their cash to higher yield investments. As a result, TD expects Schwab will contribute $230 million (Canadian) to its earnings before unusual items for the fiscal 2024 first quarter, ending January 31, 2024. That’s down 29.9% from $328 million a year earlier. To put those figures in context, TD earned $3.31 billion, or $2.18 a share, in the quarter ended October 31, 2023. However, Schwab has now converted 90% of TD Ameritrade’s accounts to its own…