The inventory market could undergo cycles, however dependable dividend shares are likely to create their very own rhythm over time. Whereas progress shares are likely to seize a lot of the headlines throughout market rallies just like the one we noticed in 2025, earnings shares typically do the actual heavy lifting all through full market cycles. Buyers who deal with reliable money movement normally search for corporations which have already confirmed themselves via completely different financial circumstances.
Toronto-Dominion Financial institution (TSX:TD) matches that description effectively. It gives an ideal mixture of dividend earnings, scale, and long-term progress potential that many TSX traders search for when constructing a core portfolio. And TD’s latest efficiency solely provides to that enchantment. On this article, I’ll discuss why this high TSX dividend inventory continues to look well-positioned to outperform the TSX yr after yr.
A high TSX dividend inventory constructed for consistency
Earlier than exploring different key elementary elements, let’s take a fast have a look at TD Financial institution’s enterprise mannequin and inventory efficiency. As one of many largest banks within the nation, it operates throughout Canadian private and industrial banking, U.S. retail banking, wealth administration and insurance coverage, and wholesale banking segments. This broad setup permits the financial institution to generate earnings from a number of sources as a substitute of counting on a single market.
After rallying by 69% in 2025, TD inventory is at present buying and selling at $129.36 per share with a market cap of practically $218.6 billion. By comparability, the TSX Composite benchmark climbed 28.4% through the yr. The financial institution additionally rewards its traders with quarterly dividends and at present gives an annualized dividend yield of roughly 3.3%, enhancing its enchantment as a high TSX dividend inventory to purchase for income-focused traders.
Presently, this TSX dividend inventory is buying and selling just under its all-time excessive, exhibiting sustained momentum slightly than a short-lived spike. This stable efficiency clearly displays traders’ rising confidence in TD’s skill to develop earnings whereas persevering with to reward shareholders via dividends. For traders in search of a high TSX dividend inventory, this mixture of earnings and capital appreciation has been exhausting to disregard. Now, let’s take a better have a look at its actual numbers.
Earnings progress provides one other layer of power
TD’s latest monetary outcomes assist clarify why its inventory continues to carry its floor. Within the fourth quarter of fiscal 2025 (resulted in October), TD delivered adjusted earnings of $2.18 per share, up sharply YoY (yr over yr).
Equally, the financial institution’s adjusted internet earnings for the quarter rose 22% YoY to $3.9 billion. Its Canadian private and industrial banking posted report income, backed by larger mortgage and deposit volumes. TD’s U.S. retail earnings additionally improved as decrease provisions for credit score losses and steadiness sheet restructuring started to indicate advantages.
In the meantime, its wealth administration and wholesale banking added additional help with stronger price and buying and selling earnings.
A technique centered on long-term returns
These stable financials clarify why TD appears well-positioned to maintain beating the TSX over time. The financial institution ended fiscal 2025 with a standard fairness tier 1 capital ratio of 14.7%, giving it a robust capital cushion.
In 2026, the financial institution expects to deal with increasing digital engagement, rising fee-based earnings, and controlling prices. These efforts may proceed to help its steady earnings progress whereas serving to it preserve a dependable dividend. That’s why, for traders on the lookout for a high TSX-listed dividend inventory within the new yr, TD’s sturdy mixture of dividend earnings, resilience, and disciplined execution continues to make it one of the engaging names on the trade.
