TD Bank Q1 Profit Rises 21%; Adjusted Net Tops View, Revenue Misses; Raises Dividend 5% (TD)

TD Bank Q1 Profit Rises 21%; Adjusted Net Tops View, Revenue Misses; Raises Dividend 5% (TD)


Early on Thursday, financial services company Toronto-Dominion Bank (otherwise known as TD Bank Group) (TD) reported a rise in both profit and revenue for the first quarter, with adjusted net income topping analysts’ expectations and revenue missing. Also, the company said it is increasing its dividend 5%.

The Toronto-based company said its first quarter net income was $1.79 billion, or $1.86 per share, up from $1.48 billion, or $1.55 per share, in the same quarter a year earlier.

Adjusting for the exclusion of certain items, net income for the quarter was $1.92 billion, or $2.00 per share, versus adjusted earnings of $1.76 billion, or $1.86 per share, a year earlier. According to analysts polled by Thomson Reuters, TD was expected to earn $1.92 per share in the first quarter. Analysts’ estimates usually are exclude certain items.

The bank’s revenue for the quarter also increased, coming in at $5.97 billion fro $5.64 billion a year earlier. However, this was not able to top Wall Street’s estimates as analysts were projecting revenue of $6.01 billion.

“Overall we were very pleased with our strong start to 2013, and we’re encouraged by signs of improvement in the global economy. However, we remain cautious as slowing growth and the low interest rate environment impact our businesses. We will continue to strategically invest in our businesses while prudently managing our expense growth,” TD Bank Group Ed Clark said.

Moreover, TD Bank said it approved an increase to its quarterly dividend payout; the bank will now payout 81 cents per share, up 5% from the previous payout of 77 cents per share. This dividend will be paid on April 30 to shareholders of record on April 3.

TD Bank shares were inactive during pre-market trading on Thursday. The stock is up about +4% over the past twelve months.

The Bottom Line
Shares of TD Bank (TD) have a dividend yield of 3.93% based on last night’s closing price of $82.34 and the company’s updated annualized dividend payout of $3.24 per share.

Toronto-Dominion Bank (TD) is recommended at this time, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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