10 Best Bank Stocks With High Dividends

2. The Toronto-Dominion Bank (NYSE:TD)

Dividend Yield as of December 6: 5.18%

Number of Hedge Fund Holders: 23

The Toronto-Dominion Bank (NYSE:TD) is a major financial institution offering a wide range of services across Canada, the United States, and internationally. TD provides everyday banking, credit cards, auto loans, investment advice, and insurance products.

The bank has faced significant challenges recently. The Toronto-Dominion Bank (NYSE:TD) has suspended its medium-term financial targets as it undergoes a strategic review following a major settlement over money-laundering violations. The review comes as the bank prepares for a leadership change, with incoming CEO Raymond Chun tasked with navigating the fallout. TD is reassessing its growth strategy, productivity, and capital allocation after agreeing to a $3.1 billion settlement with US authorities over its failure to prevent money laundering. The stock is down by over 14% since the start of 2024.

However, The Toronto-Dominion Bank (NYSE:TD) had a strong third quarter, with revenue up 8% compared to last year. This growth came from higher fee income, solid credit performance, and impressive results in Canadian Personal and Commercial Banking. In the fourth quarter, expenses were higher due to investments in risk and control infrastructure and some legal costs, totaling around $150 million. The bank also faced record catastrophic claims in its insurance business and an increase in impaired PCLs (provision for credit losses) in its non-retail lending portfolios. Earnings for the fourth quarter were $3.2 billion, with EPS at $1.72, both down 8% and 5% year-over-year, respectively. Despite these challenges, the bank is confident in its earnings potential and has announced a $0.03 dividend increase, raising it to $1.05 per share. Shareholders of record by January 10 will get paid on January 31.

TD is a popular name among Wall Street hedge funds. Leading funds like Arrowstreet Capital, Marshall Wace LLP, and Renaissance Technologies hold stakes in the company.