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National Bank Turns More Positive on Toronto-Dominion Bank (TD)

The Toronto-Dominion Bank (NYSE:TD) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

On December 18, National Bank analyst Gabriel Dechaine upgraded The Toronto-Dominion Bank (NYSE:TD) to Outperform from Sector Perform and set a C$134 price target.

A few days earlier, on December 4, the bank announced a 3% increase in its quarterly dividend to C$1.08 per share. That move came even as earnings in the final quarter of fiscal 2025 were weighed down by restructuring costs and other charges. Management is cutting expenses while continuing work to strengthen its anti-money-laundering controls.

The Toronto-Dominion Bank (NYSE:TD)’s earnings climbed, supported by stronger capital markets activity and solid volume growth in Canadian banking. That kind of rebound tends to stand out, especially in a tougher operating backdrop. Like the rest of Canada’s “Big Six” banks, TD kept a capital position well above regulatory minimums. The bank said it expects adjusted earnings per share to grow between 6% and 8% in fiscal 2026. That outlook holds despite ongoing concerns among households and businesses tied to changes in US trade policy and tariffs that have unsettled global trade.

The dividend increase signaled confidence in the bank’s growth and earnings power, according to Raymond Chun. Chun stepped into the president and CEO role earlier this year, following The Toronto-Dominion Bank (NYSE:TD)’s historic settlement with US authorities over weaknesses in its anti-money-laundering controls. That episode led to sizable penalties and a cap on US asset growth, an overhang the bank is now working through.

The Toronto-Dominion Bank (NYSE:TD) offers a broad mix of products and services, including investing, mortgages, everyday banking, and small business solutions, supported by its online banking platform.

While we acknowledge the potential of TD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TD and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Highest Paying Monthly Dividend Stocks to Buy and 15 Dividend Stocks With Low Payout Ratios and Strong Upside

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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