Here's Why Toronto-Dominion Bank Can Keep Raising Its Dividend
Toronto-Dominion Bank (NYSE: TD), generally referred to as TD Bank, boasts a generous 4.2% dividend yield at recent prices. Compare that to Bank of America's 2.6%, and you can see why dividend investors might prefer the Canadian giant over the U.S. behemoth.
But there are more reasons than that to like TD, including its more impressive dividend history. Here are some things you need to know.
The Canadian banking industry is highly regulated, with a strong government push toward conservative operations. There are two important takeaways here. First, Canada has a small number of very large players with entrenched positions, and they are unlikely to be unseated. TD Bank is one of those players. Second, Canadian banks tend to err on the side of caution throughout their business regardless of where they are operating.
Source Fool.com
