Tom Reese/Paul Rubillo, Dividend.com
TD Bank (TD) is confirming plans to boost its direct ownership stake in TD Ameritrade (AMTD) by about 5%.
The company will now own 45% of Ameritrade, and management for TD Bank insists that TD Ameritrade's significant long-term potential is a key part of its U.S. growth strategy.
The company had recently completed the purchase of New Jersey-based Commerce Bank.
The Bottom Line
We have been avoiding shares of TD since our early June coverage began, when shares were trading around the $67 level. The stock currently has a 7.68% dividend yield, based on last night’s closing price of $31.78. The stock has technical support at the $26 level. If that fails to hold, we could see the $16-22 price area come into play. On the flipside, if shares can stabilize, we see overhead resistance around the $40-42 price points. We would remain on the sidelines for now.
TD Bank (TD) is not recommended at this time, holding a Dividend.com Rating of 3.1 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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