TD Bank Group (TD) has recently made an important announcement regarding its plans to increase dividends and repurchase its common shares. Subject to regulatory approvals, TD intends to launch a normal course issuer bid to repurchase up to 30 million common shares, representing approximately 1.6% of the total outstanding shares. This move demonstrates TD's commitment to enhancing shareholder value and optimizing its capital structure.

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Share Repurchase Plan

In its announcement, TD revealed its intention to initiate a share repurchase plan, pending approval from the Office of the Superintendent of Financial Institutions Canada (OSFI) and the Toronto Stock Exchange (TSX). Once the TSX accepts the notice of intention, TD may commence the repurchases, which will continue for a period of up to one year. The repurchased shares will be acquired through the facilities of the TSX and other designated exchanges and alternative trading systems in Canada, adhering to regulatory requirements.

The repurchase price of the shares will be based on the market price at the time of acquisition or any other price permitted by the TSX. It's important to note that all repurchased shares will be subsequently cancelled. The timing and amount of the repurchases will be subject to regulatory approvals and management's discretion, taking into consideration factors such as market conditions and capital adequacy.

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Dividend Increase and Financial Position

As of April 30, 2023, TD Bank Group boasted strong financial ratios, including a Common Equity Tier 1 ratio of 15.3%, a Tier 1 ratio of 17.3%, a Total Capital ratio of 19.7%, and a Leverage ratio of 4.6%. These figures highlight TD's robust capital position and underscore its ability to return value to shareholders through dividend increases and share repurchases.

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Members of LevelFields received the alert of this event on May 25, 7:00 AM ET