TD Bank (TD): Why a Bank With a $3B Fine Is Still a Top Dividend Holding

TD is one of Canada's Big Six banks and a top-10 XDIV holding — but it's also the one name on this list carrying real, current controversy. Ignoring that would make this page useless, so here's the honest version.

What TD Actually Does

The Toronto-Dominion Bank is Canada's second-largest bank, with a large personal and commercial banking footprint in both Canada and the US (it markets itself south of the border as "America's Most Convenient Bank"), alongside wealth management and capital markets operations.

The 2024 Money-Laundering Settlement

In October 2024, TD pleaded guilty to US Bank Secrecy Act and anti-money-laundering violations, becoming the largest bank in US history to plead guilty to such charges. It paid roughly $3.09 billion in combined penalties to the DOJ, the Federal Reserve, the OCC, and FinCEN, and — more consequentially for the business — the OCC placed an asset cap of about $434 billion on TD's two US banking subsidiaries until its compliance program is remediated to regulators' satisfaction. As of 2026, that cap is still in place; most analysts don't expect it to lift before 2027 at the earliest.

Why It's Still a Top Holding

The dividend itself was never cut through any of this — TD kept paying and TD's Canadian retail banking engine, which generates the bulk of its earnings, was largely unaffected by a US regulatory action. Index methodologies that screen on financial strength and dividend history don't automatically exclude a company for a regulatory penalty unless it actually impairs the balance sheet or the payout, and here it didn't. That said, the asset cap is a real, multi-year constraint on TD's US growth, and it's worth knowing that context rather than assuming every bank in a dividend index is dividend-issue-free.

Related Calculators

Frequently Asked Questions