As economic and geopolitical uncertainties continue to haunt investors, picking stocks is starting to feel like another full-time job. But if your goal is simply to find a dependable Canadian company capable of producing income and growing over time, you may want to stick to diversified businesses no matter what the market throws at you.

Toronto-Dominion Bank (TSX: TD) could be a great example of such a business. As one of Canada’s top bank stocks, TD’s operations span personal and commercial banking, wealth management, insurance, and capital markets. That diversification gives the bank several ways to generate earnings even when one part of the economy slows down.

In this article, I’ll highlight why this Canadian dividend stock could make investing a little simpler.

Why TD stock works as a starting point

For me, TD’s appeal as a dividend stock starts with its large, diversified, and well-established business model. As of the time of writing, TD stock traded at $170.69 per share and carried a market capitalization of $281 billion.

Income investors may also like the bank’s quarterly dividend as it paid $1.12 per share in the third quarter, up from $1.05 in the same period last year. As a result, it currently offers an annualized dividend yield of about 2.6%.

On the brighter side, TD stock has been on a strong run as it has gained 55% over the last year and 32% year to date.

That rally has mainly been triggered by its improving operating results and financial performance. Notably, TD posted record earnings in Canadian personal and commercial banking, wealth management and insurance, and wholesale banking in the third quarter of its fiscal year 2026 (ended in July). Let’s take a closer look.

The earnings picture is getting stronger

TD posted a 21% year-over-year (YoY) jump in its third-quarter adjusted net income to $4.7 billion, while its adjusted earnings per share (EPS) rose 26% to $2.77.

The bank’s Canadian personal and commercial banking remained a major contributor, with the segment’s net income increasing 7% YoY to about $2.1 billion, while revenue rose 5%. Higher deposit and loan volumes, along with stronger margins, helped drive that growth.

Meanwhile, its U.S. banking segment reported net income of roughly $1.1 billion, up 41% from a year ago. Balance-sheet restructuring, stronger deposit and loan margins, and lower provisions for credit losses helped support the improvement.

TD’s wealth management and insurance business also delivered strong growth, with its net income climbing 20%, helped by record assets, higher insurance earned premiums, and deposit growth.

More importantly, the Canadian lender’s wholesale banking had an even stronger quarter as the segment’s net income jumped 87% YoY, due to a 25% rise in revenue and lower provisions for credit losses.

Growth plans can keep the story moving

For a dividend stock to remain dependable beyond the next payout, investors also need reasons the business can keep growing. TD continues to invest in front-line talent, artificial intelligence (AI), and innovation as it works to deepen client relationships. So far in fiscal year 2026, TD’s Canadian business banking has increased commercial client acquisition by 10%. Its wealth management is also continuing to expand its client base, with new accounts rising 26% YoY.

In the United States, TD expects to open 100 new banking stores by the end of calendar 2028 after getting all necessary regulatory approvals. At the same time, the bank is also continuing to strengthen its U.S. anti-money-laundering controls, with about US$550 million of related fiscal 2026 spending expected.

Given all these strong fundamentals, TD clearly offers investors a healthy combination of dividend income, scale, improving earnings, and several growth initiatives. For anyone tired of sorting through endless stock picks, that makes this Canadian dividend stock a sensible place to begin researching.

The post Too Tired to Pick Stocks? Start With This 1 Canadian Dividend Stock appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

I don’t usually buy a stock thinking about whether my kids might own it one day, but Toronto-Dominion Bank (TSX: TD) seems different. I already own TD, and when I look decades ahead, I can imagine keeping these shares in the family rather than eventually looking for an exit.

The bank serves millions of clients, has roughly $2.1 trillion in assets, and operates across Canadian and U.S. banking, wealth management, and capital markets. That scale gives it several ways to keep growing through different economic cycles.

While TD stock has already climbed about 61% over the last year, the continued strength in its earnings across several major businesses makes me think there could still be plenty of long-term upside ahead.

Let me explain why TD is a Canadian bank stock I’m comfortable owning for decades and could eventually pass onto my kids.

Why I’m holding TD for the long term

At the time of writing, TD stock traded at $166.18 per share with a market cap of $272 billion. At that current price, it also offered a 2.7% annualized dividend yield.

The stock’s impressive performance in recent years could mainly be attributed to the improving earnings growth across several important parts of its business. In the third quarter of fiscal year 2026 (ended in July), TD’s net income jumped about 38% year-over-year (YoY) to $4.6 billion.

That strength was broad-based as its Canadian personal and commercial banking division posted record earnings of about $2.1 billion, up 7% YoY, as revenue rose 5%. Higher loan and deposit volumes, along with stronger margins, supported that growth.

Similarly, TD’s U.S. banking business also showed better momentum, with the segment’s reported net income climbing 41% YoY, helped by balance sheet restructuring activities and stronger loan and deposit margins. Meanwhile, its wealth management and insurance segment delivered record earnings of $841 million, up 20% YoY.

Why I’m comfortable owning TD for years

Since I already own TD and plan to eventually pass the shares on to my kids, I’m less focused on short-term quarterly results. What matters more to me is whether TD is investing now to strengthen its competitive position over the long run.

Interestingly, the bank continues to spend on front-line talent, artificial intelligence (AI), digital tools, and initiatives designed to deepen client relationships.

At the same time, TD is investing in its U.S. franchise, as it plans to open 100 new U.S. stores by the end of calendar year 2028.

That said, one near-term risk remains on my radar as a TD shareholder. The bank is still working to strengthen its U.S. Bank Secrecy Act and anti-money laundering program, with fiscal 2026 remediation and related governance and control investments projected at roughly US$550 million before tax. Significant work remains through calendar 2027, and the process could extend beyond that depending on regulatory reviews and additional remediation needs.

Despite those challenges, TD remains well capitalized. Its Common Equity Tier 1 ratio was 14.3% in the latest quarter, providing ample room to serve clients, continue investing in growth, and return excess capital to shareholders.

Overall, TD checks many of the boxes I want from a long-term investment. It has significant scale, diversified sources of earnings, improving profitability, a dividend, and a willingness to keep investing for the future. As an existing shareholder, I still see TD as an attractive Canadian bank stock to own for decades and pass onto my kids.

The post The Canadian Bank Stock I’d Pass Onto My Kids appeared first on The Motley Fool Canada.

More reading

• The TFSA Investment Strategy I’d Use to Build a Retirement Paycheque
• TD vs. Royal Bank: Which Dividend Stock Would I Buy With $10,000?
• 2 Dividend Stocks to Hold for the Next 20 Years
• If Rates Go Up, Are Canadian Bank Stocks Buys or Traps?
• Is Your GIC Still Worth It? How the Rate Hike Might Change the Math for Savers

Fool contributor Jitendra Parashar has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares of Toronto-Dominion Bank (TSX: TD) have delivered market-beating returns to long-term shareholders. Since April 1995, TD Bank stock has returned 1,820%. Moreover, if we adjust for dividend reinvestments, cumulative returns are closer to 5,480%. It means a $1,000 investment in TD stock three decades back would be worth close to $56,000 today.

Despite these outsized gains, the TSX stock is down 22% from all-time highs. So, let’s see if you should buy the TSX bank stock while it’s below $85.  

Is TD Bank stock a good buy in 2025?

TD Bank is making significant progress on its balance sheet repositioning and strategic review while navigating economic uncertainty caused by U.S. tariffs. The bank’s new chief executive officer (CEO), Raymond Chun, is leading a comprehensive strategic review process that is approximately two-thirds complete.

The review focuses on four key areas: capital allocation across business lines, simplifying the portfolio, investing in growth capabilities, and restructuring the bank’s cost base.

The recent sale of TD’s stake in Charles Schwab generated approximately $15 billion in capital, with $8 billion allocated to share buybacks and the remainder reserved for strategic initiatives. The Canadian bank has initiated its buyback program and expects to repurchase up to 100 million shares over the next 12 months.

While focusing on organic growth, TD has categorically ruled out near-term acquisitions, with Chun stating that mergers and acquisitions (M&A) would be too distracting. At the same time, the bank is prioritizing remediating anti-money laundering (AML) issues. TD has budgeted approximately $500 million annually for 2024 and 2025 for AML remediation, with expenses expected to normalize in 2027.

In its U.S. operations, TD is making substantial progress in repositioning its balance sheet. The bank has created approximately $40 billion in buffer space below its $434 billion asset cap and completed a bond repositioning program, which is expected to generate $300 million to $ 500 million in additional net interest income.

Chief Financial Officer Kelvin Tran acknowledged that newly imposed tariffs between the U.S. and Canada would create economic headwinds but expressed confidence in the bank’s ability to manage through this period. TD has observed customers taking a “wait-and-see approach,” with some pausing investment decisions amid the uncertainty.

What is the target price for TD Bank stock?

Despite a challenging environment, TD’s business momentum remains strong. The wholesale banking division achieved a record $2 billion in quarterly revenue in the fiscal first quarter (Q1) (ended in January), following the integration of Cowen. Meanwhile, the wealth management business posted record earnings, with a return on equity nearly double that of its closest competitor.

In Canadian personal and commercial banking, which generates approximately 70% of TD’s earnings, the bank continues to see growth opportunities through deepening relationships with its 14 million clients.

TD maintains a strong capital position with a CET1 (common equity tier-one) ratio target of approximately 13%. Executives hinted at potential additional share repurchases following the conclusion of the strategic review if excess capital remains available.

TD stock trades at a forward price-to-earnings multiple of 10.7, which is lower than its 11.1 times multiple over the past decade. Bay Street expects adjusted earnings per share to expand from $7.78 per share in fiscal 2025 to $9.43 per share in 2027.

Analysts remain bullish on TD stock and expect it to increase by 8.5% over the next 12 months, based on consensus price targets. If we include the dividend payout, total returns could be closer to 13%.

The post Should You Buy TD Bank Stock While it’s Below $85? appeared first on The Motley Fool Canada.

More reading

• The TFSA Investment Strategy I’d Use to Build a Retirement Paycheque
• TD vs. Royal Bank: Which Dividend Stock Would I Buy With $10,000?
• 2 Dividend Stocks to Hold for the Next 20 Years
• If Rates Go Up, Are Canadian Bank Stocks Buys or Traps?
• Is Your GIC Still Worth It? How the Rate Hike Might Change the Math for Savers

Charles Schwab is an advertising partner of Motley Fool Money. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab. The Motley Fool has a disclosure policy.