As indicated in our April dividend update, we have been keeping an eye on Toronto-Dominion Bank (TD.TO) for the last few weeks. As the general weakness in Canadian bank sector continues, we believe TD remains a strong long term dividend holding.
We purchased 27 shares of TD.TO to add to our existing position.
Since our last purchase of TD back in March, not a whole lot has changed. The price of TD has been going sideways since April. We plan to hold TD shares for a very long time, so we do not pay much attention on what the stock price is doing. If we think the company will continue bringing profits in the future and continue growing, then it makes sense to invest in the company.
How good is TD when it comes to dividend history? TD started paying dividends in 1857. That makes it a 158 straight years of dividend payment streak. Although TD hasn’t raised dividend every year during this streak, this long lasting dividend payment history is still very impressive nonetheless. TD currently has a forward looking PE ratio of 11.5 and a 5 year PEG ratio of 1.19. At current yield of 3.68% and a 10 year annualized dividend growth rate of 10.5%, we believe adding more TD shares is a calculated conservative move.
The purchase of TD.TO will add $55.08 in our annual dividend income.
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