TD Stock: Buy at the High?

Toronto-Dominion Bank (TSX: TD) is one of Canada’s big bank stocks. Recently, the price of the stock broke the $102 per share mark, moving it within just a dollar of its 52-week high. This begs the question: Should investors buy at the high?

Let’s look at TD Bank and determine if you should buy at the high.

Meet TD Bank

TD is the second-largest of Canada’s big banks. The bank enjoys a massive branch network both at home in Canada as well as in the U.S.

That U.S. presence is where TD has focused its growth efforts for the past decade. In the years following the Great Recession, TD acquired distressed banks in the U.S. and stitched them together to form its current network.

Today, that branch network comprises over 1,000 locations and stretches from Maine to Florida.

This not only provides some diversification outside of its core business in Canada, but also serves as a huge growth driver for the bank.

Turning to results, TD is set to report on the third quarter of 2025 later this month. Until that time, we can turn the page back to the second quarter.

In that quarter, TD reported earnings of $11.1 billion, realizing a 334% increase over the same period last year. That massive increase is reflecting the sale of TD’s remaining Schwab position.

That sale was largely attributed to the fallout of TD’s inadequacy in averting money laundering in the U.S. As a result, regulators found the bank liable and imposed fines and an asset cap.

This required TD to shift its growth policy to other markets, while making its US operations leaner and more efficient. Some of that growth focus has now shifted back to Canada, as well as to the digital space.

Despite that imposition, TD has thrived in recent months and now trades near its 52-week high. But does this mean that investors should buy at the high?

Another great reason to buy at the high: The dividend

Apart from the stability that the big bank stocks offer, there’s another compelling reason for investors to consider TD Bank: the dividend.

TD offers a tasty quarterly dividend that it has been paying out without fail for nearly two centuries. Not only does this make the stock a great long-term, low-risk option to consider, but it can also be a source of steady income growth.

As of the time of writing, TD boasts a yield of 4.1%. This means that a $30,000 investment in TD Bank (as part of a larger, well-diversified portfolio) will earn an income of over $1,200.

As for that source of growth, prospective investors should note that TD has an established cadence of providing annual bumps to that dividend going back years.

In other words, buying TD stock today and reinvesting those dividends until needed could prove to be a lucrative source of growth over the longer term.

TD: Buy at the high, enjoy serious growth for years

TD Bank offers investors the full package. The bank boasts a solid domestic market at home, a growing branch network in the U.S., and a stellar dividend. Furthermore, that stellar performance is set to continue, making this a great option to include in any well-diversified portfolio.