Quick Read
- TD Bank Group shifts to a semi-annual dividend review cycle for 2026.
- A $1.08 per share dividend declared, payable January 31, 2026.
- Shareholders can choose cash payout or reinvest dividends via the Dividend Reinvestment Plan (DRIP).
- Preferred share dividends announced for Series 1, 16, and 18.
- DRIP enrolment and termination deadline is January 9, 2026.
TD Bank Group Announces Key Dividend Changes for 2026
On December 4, 2025, the Toronto-Dominion Bank (TD Bank Group) unveiled significant updates for its shareholders: the bank is transitioning from an annual dividend review cycle to a semi-annual cycle. This move is designed to better align shareholder returns with TD’s ongoing earnings growth and evolving financial strategy.
For the quarter ending January 31, 2026, TD has declared a dividend of $1.08 per fully paid common share. This dividend will be payable on and after January 31, 2026, to shareholders of record as of the close of business on January 9, 2026. The announcement, detailed in TD’s official newsroom, signals a continued commitment to rewarding shareholders amid changing market conditions (TD Bank Group Newsroom).
Dividend Reinvestment: Options and Deadlines
Shareholders have more than one way to receive their dividends. In addition to cash payouts, TD offers a Dividend Reinvestment Plan (DRIP), allowing holders to reinvest their dividends into additional common shares. For this upcoming dividend, TD will purchase these shares on the open market rather than issuing them from treasury, meaning no discount will be applied to the share price for reinvested dividends.
Participation in the DRIP requires timely action. Registered shareholders must submit enrolment forms to TSX Trust Company by January 9, 2026. Beneficial or non-registered holders—those who own shares through a broker or financial institution—should contact their intermediary for specific instructions. For those looking to opt out of the plan and receive cash dividends, written notice must be delivered by the same deadline.
This process isn’t new to seasoned investors, but the specifics around open market purchases and the absence of a discount are notable. It’s a subtle shift, but one that affects the economics of reinvestment, especially for those actively managing their TD stock portfolios.
Preferred Share Dividends: Details for Series Holders
TD Bank Group also declared dividends for its Non-Cumulative Redeemable Class A First Preferred Shares, covering three series:
- Series 1: $0.310625 per share
- Series 16: $0.3938125 per share
- Series 18: $0.3591875 per share
These will be payable on the same date as the common share dividend, with identical record and payment dates. TD clarified that, for Canadian tax purposes, all declared dividends will be considered eligible dividends unless stated otherwise.
TD Stock: Performance and Position in 2025
TD Bank Group remains one of North America’s largest financial institutions, with $2.1 trillion in assets as of October 31, 2025. Serving over 28.1 million customers across four key business lines—including Canadian and U.S. retail banking, wealth management, insurance, and wholesale banking—TD is a fixture in both Canadian and U.S. financial markets. The bank’s digital footprint is robust, boasting more than 13 million active mobile users.
TD’s common shares trade under the symbol “TD” on both the Toronto Stock Exchange and the New York Stock Exchange. For investors tracking performance, TD’s consistent dividend history and expanding digital presence are factors that have contributed to its reputation for stability and growth. The semi-annual dividend review may signal increased flexibility in adjusting returns to match the bank’s performance, a point of interest for long-term holders and new entrants alike.
How to Take Action: Enrolment and Termination Steps
For shareholders considering joining the DRIP for the January 2026 dividend, the process is straightforward but time-sensitive:
- Registered holders: Obtain and submit an Enrolment Form to TSX Trust Company by January 9, 2026.
- Beneficial holders: Contact your broker or financial institution for enrolment instructions well before the deadline.
Those wishing to terminate their participation must notify TSX Trust Company or their broker, depending on how they hold shares. Missing these deadlines could mean automatic reinvestment of dividends or delayed changes to your dividend preferences.
What Does This Mean for Investors?
TD’s dividend declaration and process changes arrive at a time when many investors are seeking stability and predictability in their portfolios. The semi-annual review cycle could offer more frequent opportunities to adjust payouts, aligning shareholder rewards more closely with TD’s financial performance. For those using DRIP, the absence of a discount for open market purchases may slightly reduce the attractiveness of reinvestment versus previous treasury-issue scenarios, but it also signals TD’s confidence in the underlying value of its shares.
The bank’s ongoing commitment to eligible dividends for tax purposes further strengthens its appeal to Canadian investors, while its scale and digital reach position it well for continued relevance in 2025 and beyond.
TD’s decision to move to a semi-annual dividend review and clarify its reinvestment policy reflects a strategic shift toward greater flexibility and transparency. For investors, this means more responsive returns and a clear roadmap for dividend management, reinforcing TD’s reputation for consistency while adapting to market demands.