Whether you are trying to build wealth for retirement or simply want to lock in some reliable dividends, few sectors offer the kind of stability that Canadian banks do. But among the big players, Toronto-Dominion Bank (TSX:TD) is starting to look like a real winner this year – and not just because it bounced back from a tough year.
With the worst seemingly behind it, TD stock is not only climbing back in 2025 but also showing investors that it still knows how to deliver. Combine that with its stable dividends and a presence on both sides of the border, and you’ve got a bank stock that blends income and growth surprisingly well.
In this article, I’ll explain why TD is not only my top Canadian bank stock to buy right now but also one of the top TSX stock picks for long-term investors.
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A solid rebound with more room to grow
TD Bank is one of the biggest lenders in the country with a strong presence in both Canadian and U.S. markets. After facing a rough patch in 2024, TD is finally regaining investor confidence and rewarding those who stayed patient.
After falling by nearly 11% last year, the stock has surged over 32% so far in 2025. As a result, it currently trades at $101.29 per share, giving it a market cap of $173.8 billion. At this market price, the bank offers a quarterly dividend, which works out to a solid 4.1% annualized yield, making it a strong income option for long-term investors.
Much of TD stock’s solid performance could be attributed to growing optimism around interest rate cuts, as well as a sharp improvement in TD’s own fundamentals. While 2024 brought regulatory challenges that weighed on its U.S. operations, the bank now seems to be moving past those setbacks. As a result, investors are focusing more on its improving earnings, steady revenue, and how it’s positioning itself for future growth.
Latest financial growth trends show strength
In the second quarter of its fiscal year 2025 (ended in April), TD reported a YoY (year-over-year) rise in its revenue to $14 billion. Although there was a slight sequential dip, the bank still managed to maintain strong margins and profitability.
Its adjusted net profit for the quarter came in at $3.4 billion, which was slightly down YoY, but the decline was more a result of short-term headwinds rather than structural issues. And even with that minor decline, TD’s net profit margin remained healthy at 24.5%.
Last quarter, the bank’s performance also reflected strong demand in its Canadian personal and commercial banking segment. Meanwhile, its U.S. retail banking operations are still catching up, but signs of improvement are beginning to show.
Long-term strategies to shape future growth
One of the major factors that makes TD a top Canadian bank stock to buy and a top TSX stock pick is its broader focus on long-term growth. Interestingly, the bank continues to invest heavily in digital innovation and operational efficiency. That includes expanding its U.S. credit card partnerships and boosting self-serve capabilities across channels.
As the economic outlook brightens and interest rates ease further, TD could be in the perfect position to keep growing its top and bottom line. That’s why TD stock is definitely worth considering for anyone looking to invest in a proven bank with real upside potential.
