Toronto-Dominion Bank (TSX:TD) is not only one of the largest banks in Canada, but also one of the most reliable dividend stocks on the TSX. Over the years, TD has built a strong reputation for delivering consistent earnings, posting consistent growth, and rewarding its shareholders. That’s why it remains one of the top holdings for many long-term Canadian investors. Whether you’re just starting to build passive income or looking to grow an existing stream of cash flow, TD could be a dependable stock to consider.
In this article, I’ll break down exactly how many shares of TD Bank you would need to own today to earn $2,000 in annual dividends. But first, let’s take a closer look at its recent financial growth trends and fundamental outlook.
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Solid rebound backed by improving market sentiment
TD Bank stock has been on a consistent upward climb in 2025, outperforming most other bank stocks listed on the Toronto Stock Exchange. After surging 30% year to date, the stock currently trades at $98.84 per share with a market cap of $171.6 billion. At this market price, it also offers an attractive annualized dividend yield of 4.3%.
This strong performance shouldn’t be a surprise as investors have grown less concerned about the recent U.S. anti-money laundering probe, which the bank has already resolved. Also, TD’s recent gains reflect optimism around falling interest rates in Canada, which tend to support lending activity and improve loan growth.
Earnings dipped, but Canadian banking stayed strong
In the second quarter of its fiscal year 2025 (ended in April), TD posted total revenue of $13.96 billion, up just over 1% YoY (year over year). However, its adjusted net profit slipped 4.8% YoY to $3.43 billion.
In its latest earnings report, the bank noted that its U.S. segment remained under pressure, but Canadian personal and commercial banking continued to deliver strong results.
Even with this short-term earnings softness, TD maintained a solid adjusted net profit margin of 24.5% in the quarter. When you’re depending on consistent payouts, this level of stability really matters.
Growth moves that back up your dividend goals
What makes TD more than just a safe bet is its forward-thinking strategy. The bank is doubling down on its digital initiatives and boosting its Canadian operations with improved lending and deposit capabilities. It’s also expanding credit card partnerships and focusing on higher-margin segments to offset pressure in the U.S. market.
These moves signal that the bank isn’t just trying to stay afloat but also actively building for better profitability and long-term growth. For income-focused investors, that makes TD stock even more appealing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | QUARTERLY DIVIDEND / SHARE | TOTAL YEARLY PAYOUT |
| TD Bank | $98.84 | 477 | $1.05 | $2,003.40 |
| Prices as of June 25, 2025 |
Foolish bottom line
With its current dividend yield, you’d need around 477 shares to generate $2,000 in annual dividend income. However, that will require you to invest $47,147 in TD Bank stock. That’s not a small investment, but for long-term returns and peace of mind, it might just be worth it.
That said, putting such a large amount into a single stock may not be the best idea for everyone. No matter how strong TD’s fundamentals are, diversification is key to reducing risk. A well-balanced portfolio with other reliable dividend stocks could give you more stability and peace of mind, especially during uncertain market cycles.
