TD Bank is a unique company in terms of its business model, as well as its track record of success. In fact, Money magazine recently named TD Bank "America's Best Big Bank" of 2014.
TD Bank never even cut its dividend, which is very important for retirees and other income-seeking investors. It's worth noting here that TD pays its dividend in Canadian dollars, so it may go up or down as a result of currency fluctuations, but that has nothing to do with the stability of TD's business.
In fact, TD's dividend has grown at a 12% annualized rate over the past two decades, which is exactly the kind of performance that dividend investors love to see. With a very healthy payout ratio of less than 45% for 2014, there is no reason to believe this pattern won't continue, especially with the bank's expected growth rate over the next few years.
TD Bank is a long-term winner that you can buy at a discount going into 2015 that should produce excellent growth in your portfolio for years to come. The 3.5% dividend yield is among the best in the banking sector, and it should keep getting better.
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The article 1 Great Bank Stock for 2015 and Beyond originally appeared on Fool.com.
Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends and owns shares of TD Ameritrade. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
