On Thursday, May 28, 2026, the Board of Directors of The Toronto-Dominion Bank (TSE: TD) announced a quarterly dividend increase from C$1.08 to C$1.12 per share. The dividend will be payable on July 31, 2026, to shareholders of record as of July 10, 2026. This represents a 3.70% increase over the previous quarterly dividend.
This marks TD’s second dividend increase within the past year. Back in December 2025, the bank raised its quarterly dividend from C$1.05 to C$1.08 (a 2.86% increase). Combined, these two increases result in a total dividend growth of 6.67% over the past 12 months, which is a solid outcome.
Current Dividend Yield and Income Impact
At yesterday’s closing price of C$153.33, this increase brings TD’s forward dividend yield to approximately 2.92%.
As an owner of 200 shares of Toronto-Dominion Bank, this dividend increase adds $17.30 to my projected annual net dividend income.
Long-Term Dividend Growth Track Record
Toronto-Dominion Bank is a member of the Canadian Dividend All-Star List, boasting a 15-year streak of dividend increases. According to the list, its dividend growth rates are:
- 1-year: 2.9%
- 3-year: 5.7%
- 5-year: 6.2%
- 10-year: 7.7%
This recent dividend increase marks the 12th consecutive raise I’ve received since initiating my position in September 2014. Over that time, TD’s quarterly dividend has grown from C$0.47 to C$1.12 per share—an impressive 138% increase.
Commentary
I was expecting an increase of around three percent, so this one came in slightly ahead of expectations. TD appears to be continuing its pattern of semi-annual dividend increases, and if this trend holds, the cumulative annual growth should remain quite attractive.
At the time of writing, TD represents about 2.25% of my portfolio and contributes approximately 1.69% of my projected annual dividend income. Following this increase, my yield on cost stands at 7.84%.
Quick Valuation Take
TD currently appears fairly valued to slightly expensive relative to its historical averages. The lower yield compared to some Canadian peers reflects stronger perceived stability and growth prospects, particularly in its U.S. operations.
Dividend Safety and Outlook
The dividend remains very well covered, supported by strong capital ratios and a conservative payout approach typical of Canadian banks. TD’s strategy of smaller but more frequent increases suggests a balanced and sustainable dividend growth outlook.
Assuming economic conditions remain stable, investors can likely expect continued mid-single-digit annual dividend growth.
Final Thoughts
This was a solid and slightly better-than-expected dividend increase. While the yield is lower than some peers, TD compensates with consistent growth and a disciplined approach to capital allocation.
TD should remain a reliable dividend growth contributor in my portfolio for years to come.
Summary of 2026 Dividend Increases / Cuts
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Full Disclosure: Long TSE:TD
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Thanks for the solid information !!
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