Toronto-Dominion Bank (TSX:TD) has been through a rough patch over the last few years, but 2025 is shaping up to be a turning point. After falling for three straight years, TD stock has suddenly come alive, climbing in eight of the last nine weeks. Now trading at $96.76 per share, the stock is just below the $100 mark and at its highest level in over three years.
With a dividend yield sitting at 4.3% and a market cap of more than $167 billion, TD stock is reminding investors why it has long been considered one of Canada’s most reliable bank stocks. In this article, let’s look at TD’s comeback story, what might be fueling the momentum, and whether there is still time to take advantage of its current price.
What’s behind TD Bank stock’s strong rebound?
One of the key reasons behind TD Bank’s strong recovery could be the broader macro backdrop. As interest rates started trending lower in recent quarters, that set a positive tone for the financial sector. Lower borrowing costs generally help banks grow their loan books, and TD Bank is already seeing those benefits, especially in Canadian lending. It also helps that inflation has cooled down, which gives more breathing room to both households and businesses – and, in turn, to the banks that serve them.
Another big factor behind TD Bank’s surge could be its sale of the remaining stake in Charles Schwab. That deal brought in a significant capital boost and a gain of nearly $9 billion for TD, which not only padded its bottom line but also gave investors more confidence in its ability to strengthen its core operations.
Recent trends show signs of stability
In the fiscal April 2025 quarter, TD Bank’s adjusted net income slipped 4% on a YoY (year-over-year) basis. However, in Canada, its personal and commercial banking division saw stable growth in loans and deposits. In fact, the bank’s personal loans grew 3% from a year ago and business loans climbed 6%, clearly reflecting healthy demand.
Meanwhile, TD Bank’s wealth management and insurance arm delivered a 14% YoY jump in quarterly profit with the help of strong investment flows and higher premiums. Its wholesale banking division also came in with record revenue last quarter, driven by increased trading activity and strong deal flow.
Is TD stock a buy now?
As TD Bank stock still trades below $100, the moment looks right for long-term investors to finally make their move. This is mainly because the bank is continuing to lay the foundation for the future. From upgrading its digital platforms to rolling out strategic cost-cutting efforts, TD Bank is focused on improving how it operates, while staying disciplined on risk and returns.
And let’s not forget the dividend. With a yield above 4% and a long track record of stable payouts, TD stock offers income along with the potential for long-term capital gains. For anyone looking to build wealth over time, this stock may be among the most attractive stocks on the TSX today.
