Canadian banking giant Toronto-Dominion Bank (TD) on Thursday posted much better-than-expected fourth quarter earnings and raised its quarterly dividend payout by 6%.

The Toronto-based company reported fourth quarter net income of C$1.52 billion, or C$1.69 per share, compared with C$946 million, or C$1.07 per share, in the year-ago period. Excluding one-time items, adjusted profit was C$1.77 per share.

Total revenues rose 13% from last year to C$5.67 billion.

On average, Wall Street analysts expected a much smaller profit of C$1.53 per share, on lower revenue of C$5.38 billion.

In a separate announcement, TD’s board of directors approved a nearly 6% increase in the company’s quarterly dividend payout. The new dividend of 72 cents per share (up from 68 cents) will be paid on Apr. 30 to shareholders of record as of Apr. 4.

TD Bank shares were unchanged in premarket trading Thursday.

The Bottom Line
Shares of TD Bank (TD) will now have a 3.53% dividend yield, based on the new higher dividend payout and last night’s closing stock price of $81.52. The stock has technical support in the $75-$77 price area. If the shares can firm up, we see overhead resistance around the $85 price level.

Toronto-Dominion Bank (TD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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